Which of the Following Tools of Monetary Policy Is Used

question 57

Multiple Choice

Which of the following tools of monetary policy is used least often?

• A)sale and repurchase agreements
• B)printing more money
• C)setting the overnight interest rate
• D)acting as a lender of last resort
• E)purchase and resale agreements

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Definitions:

Animal Fat

A type of fat derived from animals, used in cooking and in the production of a variety of consumer goods.

Bases

Substances that can accept protons or donate a pair of valence electrons to form a bond and are characterized by a high pH, often above 7 when dissolved in water.

Transition Metals

Elements found in the central block of the periodic table (groups 3-12), characterized by their ability to form positive ions with incomplete d-shells.

Alkali Metals

A group of chemical elements in the periodic table with similar properties: shiny, soft, highly reactive at standard temperature and pressure.