Which of the Following Hypothetical Policies Is a Monetary Policy

question 120

Multiple Choice

Which of the following hypothetical policies is a monetary policy?

• A)a policy through which the federal government buys securities to release more money into the economy
• B)a policy that raises income taxes
• C)a policy that creates a national sales tax
• D)a policy whereby the government gives grants to states to build highways
• E)a policy whereby the government requires citizens to purchase health insurance

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, with holders entitled to vote on corporate matters and receive dividends.

Journal Entries

Records of financial transactions in the accounting system, marked by debits and credits to maintain the balance of accounts.

Stock Securities

Equities or shares in corporations, representing a fraction of ownership in the company; these can provide dividends and potential appreciation in value to its holders.

Long-Term Investment

Investments in securities or other assets that are intended to be held for several years or more.