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Which of the following is NOT true about monetary policy? Conventional monetary policy may be ineffective...

Which of the following is NOT true about monetary policy?

Conventional monetary policy may be ineffective in some specific economic situations.

The effects of monetary policy have time lags.

Monetary policy can change the interest rate in the mortgage market directly.

Monetary policy cannot be directed to boost an industry or region.
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Answer #1

Monetary policy is the policy that's use by the central bank of the country to over come inflation by control money supply and changes in intrest rate. it is the time lag process take up to 1.5 years to have full impact in the economy.so it can not boost directly to an industry or specific region then its ineffective is some specific economic situation. monetary policy can change intrest rates accordingly to low or high but whereas central bank doesn't set mortage rates directly.

Therefore option 3 is not in monetary policy.

Monetary policy can change the interest rate in the mortgage market directly.

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