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 options are correct.

Question

Quizplus · Accepted Answer

Open-market operations, which involve the buying and selling of government securities, are the most widely used monetary tool by central banks to control the money supply and influence interest rates.

The Most Widely Used Monetary Tool Is