The Two Policy Tools the Reserve Bank Uses to Influence

question 84

Multiple Choice

The two policy tools the Reserve Bank uses to influence the interest rate and regulate the amount of money circulating in the economy are

• A) setting the cash rate and the market interest rate.
• B) credit easing and setting the required reserve ratio.
• C) open market operations and setting the cash rate.
• D) open market operations and setting tax rates.
• E) open market operations and setting the excess reserve ratio.

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