Which of the Following Tools of Monetary Policy Is Flexible

question 112

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:

Production Supplies

Items and materials used in the manufacturing process that are not directly incorporated into the final product.

Mainframe Computer

A large, powerful computer primarily used by large organizations for bulk data processing, such as census, industry and consumer statistics, and financial transaction processing.

Indirect Manufacturing Cost

Costs in manufacturing that cannot be directly tied to a specific product or job, such as maintenance, supervision, and utility costs; also known as manufacturing overhead.

Direct Manufacturing Cost

These are costs that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.