Which of the following is NOT a tool of monetary policy?
A) Discount rate changes.
B) Automatic stabilization.
C) Open market operations.
D) Changes in the reserve requirement.

Question

Quizplus · Accepted Answer

Automatic stabilization refers to economic policies and programs, such as unemployment insurance and welfare, that automatically adjust to counteract economic fluctuations without the direct intervention of policymakers. It is not considered a tool of monetary policy, which typically involves actions like adjusting the discount rate, conducting open market operations, and changing reserve requirements to influence the amount of money and credit in the economy.

Which of the Following Is NOT a Tool of Monetary