Which of the following is an example of an "unconventional monetary policy" by a central bank?
A)The purchase of specific categories of assets with new money.
B)The sale of long-term government bonds for foreign exchange.
C)the purchase of long-term government bonds using foreign exchange.
D)raising reserve requirements by commercial banks.
E)selling gold reserves.

Question

Quizplus · Accepted Answer

The purchase of specific categories of assets with new money, such as corporate bonds or mortgage-backed securities, is an example of unconventional monetary policy. This is because it involves the central bank expanding its balance sheet beyond the traditional buying and selling of government securities, and can have a greater impact on specific sectors of the economy.

B) The sale of long-term government bonds for foreign exchange is a traditional monetary policy tool, not unconventional. 
C) The purchase of long-term government bonds using foreign exchange is also a traditional monetary policy tool. 
D) Raising reserve requirements by commercial banks is a regulatory measure, not a monetary policy tool. 
E) Selling gold reserves is also not a monetary policy tool, and is more related to management of a country's foreign exchange reserves.

Which of the Following Is an Example of an "Unconventional