Which of the following tools of monetary policy is flexible and able to affect bank reserves quickly and by relatively specific amounts?
A)the discount rate
B)the reserve ratio
C)open-market operations
D)the federal funds rate

Question

Quizplus · Accepted Answer

Open-market operations involve the buying and selling of government securities in the open market, which allows the central bank to quickly and precisely adjust the amount of reserves in the banking system.

Which of the Following Tools of Monetary Policy Is Flexible