Which of the following is not a tool of monetary policy?
A)changes in the bank rate
B)open-market operations
C)changes in tax rates
D)switching government deposits into and out of the chartered banks

Question

Quizplus · Accepted Answer

Changes in tax rates are a tool of fiscal policy, not monetary policy. Monetary policy refers to actions taken by central banks to influence money supply, inflation, and interest rates. The other options listed (changes in the bank rate, open-market operations, switching government deposits) are all tools of monetary policy.

Which of the Following Is Not a Tool of Monetary