In context with global economic policies, consider the following statements:

Quantitative Easing (QE) is a policy where central banks buy long-term securities to boost money supply.

Negative interest rates encourage banks to lend rather than hoard money.

Basel III strengthens banking sector regulation, supervision, and risk management.

How many of the above statements are correct?

Question

Quantitative Easing (QE) is a monetary policy where central banks purchase long-term securities to increase money supply: This is correct. QE aims to lower interest rates and stimulate economic activity.
Negative interest rates are implemented to encourage banks to lend more money, rather than hoarding it: This is correct. It incentivizes banks to lend to consumers and businesses.
The Basel III framework was introduced to strengthen regulation, supervision, and risk management within the banking sector: This is correct. It enhances bank capital requirements and introduces new regulatory requirements.

Thus, all the statements are correct.

GKToday Admin · Accepted Answer

All three

Quantitative Easing (QE) is a monetary policy where central banks purchase long-term securities to increase money supply: This is correct. QE aims to lower interest rates and stimulate economic activity.
Negative interest rates are implemented to encourage banks to lend more money, rather than hoarding it: This is correct. It incentivizes banks to lend to consumers and businesses.
The Basel III framework was introduced to strengthen regulation, supervision, and risk management within the banking sector: This is correct. It enhances bank capital requirements and introduces new regulatory requirements.

Thus, all the statements are correct.

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