The Four Main Tools of Monetary Policy Are

question 256

Multiple Choice

The four main tools of monetary policy are

• A) tax-rate changes, the discount rate, open-market operations, and the federal funds rate.
• B) tax-rate changes, changes in government expenditures, open-market operations, and interest on excess reserves.
• C) the discount rate, the reserve ratio, interest on excess reserves, and open-market operations.
• D) changes in government expenditures, the reserve ratio, the federal funds rate, and the discount rate.

---

Definitions:

Outsourced Training

The practice of having external specialists or companies conduct training and development activities for an organization's employees.

Division Profits

The earnings attributed to a specific branch or department within a larger organization, reflecting its financial performance.

Profit Centers

Individual departments or units within a business that are responsible for generating their own profits.

Decision Making

The process of identifying and choosing alternatives based on the values and preferences of the decision maker.