The following are major tools of monetary policy, except
A)reserve requirement changes
B)open market operations
C)discount rate changes
D)sales and purchases of government securities
E)controlling a borrower's credit risk

Question

Quizplus · Accepted Answer

Controlling a borrower's credit risk is not a tool of monetary policy. It is a means of managing credit risk within a financial institution. The other tools listed (reserve requirement changes, open market operations, discount rate changes, and sales and purchases of government securities) are all tools utilized by central banks to implement monetary policy.

The Following Are Major Tools of Monetary Policy, Except