The policy tool of changing reserve requirements is
A)the most widely used.
B)the preferred tool from the bank's perspective.
C)no longer used.
D)still used,even with its disadvantages.

Question

Quizplus · Accepted Answer

Changing reserve requirements is no longer commonly used as a policy tool because it can be disruptive to the banking system. Central banks prefer using other tools like open market operations and interest rate adjustments.

The Policy Tool of Changing Reserve Requirements Is