Consider the following statements regarding the ‘Quantitative Easing’.
1. It is an unconventional form of monetary easing used to stimulate an economy.
2. This method can be used in place of the interest rate reduction.
3. A central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.
Which of the above statement(s) is/are correct?1
1 and 3 only
2
2 only
3
2 and 3 only
4
1, 2 and 3