What Is a Primary Tool That Monetary Policy Uses to Affect

question 62

Multiple Choice

What is a primary tool that monetary policy uses to affect the overall economy?

• A) tax rates
• B) foreign monetary investment
• C) government spending
• D) the discount rate

---

Definitions:

Owner's Equity Account

An account on a company's balance sheet representing the owner's total interest in the business, after subtracting liabilities from assets.

Transaction

An agreement or communication carried out between two or more parties that results in the exchange of goods, services, or money.

Credits

Credits refer to a bookkeeping entry that increases a liability or equity account, or reduces an asset or expense account, reflecting the opposite side of a debit.

Assets

Assets are resources owned or controlled by a business, expected to bring future economic benefits.