Which of the following is a tool of monetary policy?
A) open-market operations
B) changes in banking laws
C) changes in tax rates
D) changes in government spending

Question

Quizplus · Accepted Answer

Open-market operations involve the buying and selling of government securities by the central bank to influence the money supply, which makes it a tool of monetary policy. Changes in banking laws, tax rates, and government spending are tools of fiscal policy.

Which of the Following Is a Tool of Monetary Policy