Which of the Following Tools of Monetary Policy Has Not

question 21

Multiple Choice

Which of the following tools of monetary policy has not been used since 1992?

• A)paying interest on excess reserves
• B)the reserve ratio
• C)open-market operations
• D)the federal funds rate

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Definitions:

Peak Season

The time of year when demand for services or goods is highest, often leading to increased business activity.

Collaboration

Working together cooperatively among businesses or entities towards a common goal or project, often enhancing performance or outcomes.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Production Stable

A situation in manufacturing where the production process is consistent, reliable, and capable of meeting expected demand without significant fluctuations.