Which of the following is a tool of monetary policy used by central banks to control the money supply? a) Fiscal policy b) Discount rate c) Trade policy d) Progressive taxation
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- Which of the following is a tool of monetary policy used by central banks? a) Fiscal deficit b) Tariffs c) Open market operations d) Corporate income taxWhich of the following policy actions by the Central Bank is likely to increase the money supply? Select one: Selling government bonds All of these will increase the money supply Increasing the discount rate Reducing reserve requirementsMonetary policy as one of the macroeconomic policies is generally implemented in line with the cycle of economic activity (business cycle). Based on this, answer the following questions: a) Explain what monetary policy is appropriate to apply when there is a decline in GDP, economic growth slows and there is a decline in the prices of goods? b) Explain what monetary policy is appropriate to apply when there is an increase in the amount of real output or economic growth and an increase in the price of goods? Explain!
- Which of the following is considered to be a relatively drastic tool of monetary policy? altering the reserve requirements quantitative easing altering the discount rate reducing the money supplyWhat are the tools of monetary policy? a) government spending and taxes b) money supply and interests rates c) money demand and interest rates d) government supply and tax ratesWhich of the following are objectives that the Bank of Canada tries to achieve when setting monetary policy? Check all that apply.
- Which of the following is not one of the three tools used by the fed to implement US monetary policies? Open market operations, reserve requirement regulations, printing more money, discount rateWhich of the following policies is used by a central bank to control the supply of money and interest rates? A) Fiscal policy B) Trade policy C) Monetary policy D) Industrial policyWhich one of these is not one of the three main policy tools the Federal Reserve uses to conduct monetary policy? Required Reserve Ratios Federal Reserve requirements Discount Rate Open Market Operations
- Which of the following are objectives that the Federal Reserve tries to achieve when setting monetary policy? Check all that apply Economic growth Price stability Zero inflation Interest rate stabilityWhich of the following is a tool of the Federal Reserve’s monetary policy? Group of answer choices changes in government spending on goods and services the buying or selling of government securities changes in laws that regulate commercial banks changes in tax rates of households and businessesChanges in the Velocity of Money can weaken the intended impact of Monetary Policy. True or False
