Which of the Following Is Not a Tool of Monetary

question 125

Multiple Choice

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

• A)open market operations
• B)reserve requirements
• C)changing the discount rate
• D)increasing the government budget deficit

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Definitions:

Run

A term that can describe a sustained period of demand for a product or currency, or a rapid sell-off in securities trading.

Supply and Demand

are economic principles stating that the price of a good or service is determined by its availability (supply) and the desire of buyers (demand).

Borrowed and Lent

Refers to the process of obtaining funds (borrowed) from a lender under an agreement to pay back the funds plus interest (lent) over time.

CDOs

Stands for Collateralized Debt Obligations, which are complex financial instruments that pool various types of debt and then issue new securities backed by the debt pool.