Which of the Following Is Not a Tool of Monetary

question 200

Multiple Choice

Which of the following is not a tool of monetary policy?

• A)changes in the bank rate
• B)open-market operations
• C)changes in tax rates
• D)switching government deposits into and out of the chartered banks

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Definitions:

Collude

To cooperate secretly or illegally with others, typically to deceive or gain an unfair advantage.

Zero Profits

a situation where a firm's total revenues are exactly equal to its total costs, typically occurring in perfectly competitive markets in the long run.

Noncooperative Equilibrium

A situation in which individuals or firms choose their strategy based on the anticipation that others will act in their own self-interest, leading to an outcome where no participant can benefit by changing their strategy unilaterally.

Prisoners' Dilemma

A concept in game theory where two individuals acting in their own self-interest do not produce the optimal outcome, demonstrating the conflict between individual and collective rationality.