Which of the following is not a tool of monetary policy?
A)open market operations
B)reserve requirements
C)changing the bank rate
D)increasing the deficit

Question

Quizplus · Accepted Answer

Increasing the deficit is a tool of fiscal policy, not monetary policy. Monetary policy refers to actions taken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit in the economy. Fiscal policy refers to government spending and taxation policies that can also impact economic activity.

Which of the Following Is Not a Tool of Monetary