Which of the following is not an instrument of monetary policy?
a. Reserve requirements |
||
b. Margin requirements on stocks |
||
c. Discount policy |
||
d. Open market operations |
The correct answer is c.Discount Policy
Monetary policy are the short term measures through which the government or the central bank regulates the money supply in the economy.
Reserve Requirement, Margin Requirement and Open Market Operations are all tools of monetary policy except discount policy which depends upon person to person and is not a tool of central bank
Which of the following is not an instrument of monetary policy? a. Reserve requirements b. Margin...
The Federal Reserve generally uses ___________________ to implement monetary policy. reserve requirements discount policies government spending and taxes fiscal policy open market operations
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should it do? a. Increase the reserve requirement ratio. b. Buy bonds on the open market. c. Sell bonds on the open market. d. Lower taxes. e. Increase the discount rate. The interest rate at which banks can borrow funds from the Fed is known as… a. the federal funds rate. b. the discount rate. c. the prime rate. d. the real interest rate. e....
Which tool of monetary policy does the Federal Reserve use most often? open-market operations term auctions changes in reserve requirements changes in the discount rate
5. The Federal Reserve's organization There are Federal Reserve regional banks. Which of the following is a responsibility of the Federal Open Market Committee (FOMC)? Issuing mortgages to homeowners Making decisions regarding monetary policy Buying and selling stocks The Federal Reserve's primary tool for changing the money supply is the U.S. economy (the money supply), the Federal Reserve will In order to increase the number of dollars in government bonds. 5. The Federal Reserve's organization There are Federal Reserve regional...
QUESTION 19 Which of the following is a monetary policy tool? A open-market purchases of corporate stock B. changes in the required reserve requirement. OC changing tax rates OD changes in the prime rate QUESTION 20 The Federal Reserve most frequently relies on which of the following to change the money supply? O A changes in the discount rate B. changes in the required reserve ratios Copen-market operations OD changes in the inflation rate
Which of the monetary policy tools can alter both the level of excess reserves and the money multiplier? Multiple Choice open-market operations the discount rate the federal funds rate the reserve requirement
Which of the following is NOT consistent with tightening of monetary policy? A. A central bank sells more government securities to banks. B. The country’s foreign currency may increase in value. C. Interest rates fall. D. Bank lending is reduced. E. Open-market operations may reduce banks’ supplies of funds and liquidity in a financial system. Monetary policy is preferred to fiscal policy as a _______ policy instrument because it can be adjusted more _________ than fiscal policy. A. short-term, quickly....
According to our discussion, the most widely used monetary policy tool used by the Federal Reserve is ___________. A- altering the discount rate B- altering the reserve requirements C- altering the money supply D- altering marginal tax rates
because it doesn't need approval 1. The Federal Reserve is when making monetary policy decisions. a. decentralized; presidential and congressional b. independent within government; presidential and congressional c. decentralized; private sector d. independent within government; foreign 2. The organization within the Federal Reserve that determines monetary policy is: a. the Board of Governors b. the New York Federal Reserve District Bank c. the Federal Open Market Committee d. the Federal Monetary Control Committee 3. The Federal Reserve system hasdistrict banks....
Why does the Fed use open market operations to a greater extent than reserve requirements in its conduct of monetary policy?