Which of the Following Tools of Monetary Policy Is flExible

question 68

Multiple Choice

Which of the following tools of monetary policy is flexible and able to affect bank reserves quickly and by relatively specific amounts?

• A) the discount rate
• B) the reserve ratio
• C) open-market operations
• D) the federal funds rate

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Definitions:

Homeowner's Policy

An insurance policy that provides coverage for a homeowner against losses or damages to their home and belongings inside it.

Catastrophe

An event causing great and often sudden damage or suffering; a disaster.

Independent of One Another

A condition where the occurrence or outcome of one event does not affect the occurrence or outcome of another.

Annual Profit

The total earned income of a business over one year after all expenses have been subtracted.