Which of the following is not an example of monetary policy?
A)The Federal Open Market Committee decides to sell bonds.
B)The Federal Open Market Committee decides to buy bonds.
C)The Federal Reserve reduces the reserve requirement.
D)The Federal Reserve facilitates bank transactions by clearing checks.

Question

Quizplus · Accepted Answer

Monetary policy involves managing the supply of money and interest rates by central banks. Choices A, B, and C are direct actions affecting the money supply and interest rates, thus are examples of monetary policy. Choice D, facilitating bank transactions by clearing checks, is a function of the Federal Reserve but does not directly influence the money supply or interest rates, making it not an example of monetary policy.

Which of the Following Is Not an Example of Monetary