The most widely used monetary tool is ___________.
A)altering the discount rate
B)altering the reserve requirements
C)open market operations
D)altering marginal tax rates
E)none of the above

Question

Quizplus · Accepted Answer

Open market operations, which involve buying or selling government securities in the open market, are the most widely used monetary tool by central banks around the world, including the Federal Reserve in the United States. This tool allows central banks to influence the supply of money in the economy and thus impact interest rates, inflation, and economic growth. The other options may also be used as monetary tools, but they are typically not as widely used as open market operations.

The Most Widely Used Monetary Tool Is ___________