Question

Which of the following is NOT a tool of monetary policy? A. changing the discount rate...

Which of the following is NOT a tool of monetary policy?
  • A. changing the discount rate
  • B. open market operations
  • C. adjusting reserve requirements
  • D. changing the Federal Funds rate
  • E. All of the above are tools of monetary policy.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

answer:- (E) All of the above are tools of monetary policy

Explanation:- by monetory policy the government may increase or decrease the money supply in economy for economic growth.

in open market operation the central bank purchase securities which will increase the money supply in economy and vice-versa

if central bank reduce reserve requirment then the supply of money in economy increases and vice-versa

by changes discount rate and Federal fund rate the government increase or decrease the money supply in economy.

so all are tools of monetary policy

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following tools does the Federal Reserve no longer use for monetary policy? Choose...
Which of the following tools does the Federal Reserve no longer use for monetary policy? Choose one or more: A. reserve requirements B. federal funds rate C. discount rate D. open market operations
The primary policy tool used by the Fed to meet its monetary policy goals after 2008...
The primary policy tool used by the Fed to meet its monetary policy goals after 2008 was: Multiple Choice changing the discount rate. changing reserve requirements. Adjusting the IOER, IORR and the Reverse Repo (RRP) rates. changing bank regulations. open market operations.
The tool of monetary policy with which the Federal Reserve buys and sells government bonds is...
The tool of monetary policy with which the Federal Reserve buys and sells government bonds is called: moral suasion. moral suasion. the discount rate. open-market operations.
1.The Federal Reserve System is responsible to A. regulate securities exchanges. B. conduct monetary policy. C....
1.The Federal Reserve System is responsible to A. regulate securities exchanges. B. conduct monetary policy. C. provide payment and other services to certain types of financial institutions. D. setting bank prime rates. E. both B and C. 2.         Which of the following does the Federal Reserve Banks do in regard to bank supervision? I. Examinations of state-chartered member banks II. Approval of member bank and bank holding company acquisitions III. Provide deposit insurance A. I only B. I and...
Which of the following is not a fundamental function of the Federal Reserve? 1. Conduct the...
Which of the following is not a fundamental function of the Federal Reserve? 1. Conduct the nation's monetary policy. 2. Provide an effective payments system. 3. Regulate banking operations. 4. Ensure bank profitability. 5. All of the above are fundamental functions of the Federal Reserve. QUESTION 2 Which of the following is not one of the Fed's monetary policy tools? 1. Open market operations 2. Changes in the fed funds rate 3. Changes in the discount rate 4. Changes in...
Which of the following is NOT an example of monetary policy? a. The Federal Reserve reduces...
Which of the following is NOT an example of monetary policy? a. The Federal Reserve reduces the reserve requirements. b. The Federal Open Market Committee decides to sell bonds. c. The Federal Reserve facilitates bank transactions by clearing checks. d. The Federal Open Market Committee decides to buy bonds.
1. The most commonly used tool of monetary policy in the U.S. is the reserve requirement...
1. The most commonly used tool of monetary policy in the U.S. is the reserve requirement commercial banks must keep on hand at the Fed. TRUE/FALSE? 2. Open market operations take place when the central bank sells or buys U.S. Treasury bonds in order to influence the quantity of bank reserves and the level of interest rates. The specific interest rate targeted in open market operations is the discount rate.  TRUE/FALSE? 3. The Federal Reserve System is run by the government,...
Which of the following options are tools for the Fed to engage in expansionary monetary policy?...
Which of the following options are tools for the Fed to engage in expansionary monetary policy? Select one: a. Buy government securities, decrease the discount rate, decrease the reserve requirements. b. Buy government securities, increase the discount rate, decrease the reserve requirements. c. Sell government securities, decrease the discount rate, decrease the reserve requirements. d. Sell government securities, increase the discount rate, increase the reserve requirement
The Federal Reserve Bank is the central bank of the United States that performs several functions:...
The Federal Reserve Bank is the central bank of the United States that performs several functions: a Accepts deposits from citizens b Controls the money supply c Acts as a banker for the states d All of the above The average number of times each dollar is spent on final goods and services in a year. a Equation of Exchange b Quantity Theory of Money c Federal Funds Rate d Velocity of Money What are the tools of monetary policy?...
1. The policy tool of changing reserve requirements is: A. The most widely used B. The...
1. The policy tool of changing reserve requirements is: A. The most widely used B. The preferred tool from the bank’s perspective C. No longer used D. Still used but only occasionally 2. The demand for reserves curve takes a horizontal shape when A. The Fed Funds rate equals 2% B. The Fed Funds rate equals the discount rate C. The Fed Funds rate equals the interest rate paid to commercial banks on reserves D. The Discount rate equals 5%...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT