Which of the Following Is Not a Basic Monetary Policy

question 106

Multiple Choice

Which of the following is not a basic monetary policy tool used by the Fed?

• A) The discount rate.
• B) The reserve requirement.
• C) Taxes.
• D) Open-market operations.

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Definitions:

Accounts Payable

Short-term liabilities representing amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Factoring

A financial transaction and a type of debtor finance where a business sells its accounts receivable to a third party (the factor) at a discount.

Net Working Capital

measures a company's short-term financial health by subtracting its current liabilities from its current assets, indicating the liquidity available to fund day-to-day operations.

Accounts Receivable

Unsettled financial obligations to a corporation from its customers for products or services already delivered or engaged in, awaiting payment.