The most-used instrument of monetary policy is open-market operations.

Name: The most-used instrument of monetary policy is open-market operations.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

Open-market operations involve the buying and selling of government securities by the central bank, which directly impacts the money supply and can be adjusted to regulate interest rates and inflation. It is considered the most common and effective tool used by central banks to implement monetary policy.

The Most-Used Instrument of Monetary Policy Is Open-Market Operations