Which of the Following Tools of Monetary Policy Is Considered

question 245

Multiple Choice

Which of the following tools of monetary policy is considered the most important on a day-to-day basis?

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

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Definitions:

Out-Of-Pocket Costs

Direct payments made by consumers for goods, services, or healthcare that are not reimbursed by insurance or other means.

Funding

The act of providing financial resources for a project, business, or any initiative requiring money.

Health Care

The organized provision of medical services, treatment, and preventive measures to maintain or improve health through the diagnosis and treatment of illness, injury, and other physical and mental impairments.

Relative Percentages

A statistical measure that represents a portion of a whole as a percentage relative to another quantity.