The tools of monetary policy for altering the reserves of commercial banks are the:
A) tax rate and level of government spending.
B) Consumer Price Index and unemployment rate.
C) public debt, budget surplus, and budget deficit.
D) discount rate, reserve ratio, open-market operations, and interest on excess reserves.

Question

Quizplus · Accepted Answer

The tools of monetary policy used by central banks to influence the reserves of commercial banks include the discount rate, reserve ratio, open-market operations, and interest on excess reserves. These tools help control the money supply and influence economic activity.

The Tools of Monetary Policy for Altering the Reserves of Commercial