Which of the Following Is Not Considered a Monetary Policy

question 30

Multiple Choice

Which of the following is not considered a monetary policy tool of the Federal Reserve?

• A) Changing float requirements
• B) Open market operations
• C) Changing the discount rate
• D) Changing reserve requirements
• E) All of the above are considered to be monetary policy tools

---

Definitions:

Supply

The total amount of a product or service that is available to consumers.

Elastic

Describes a situation where the demand for a good or service significantly changes in response to a change in price.

Optimal Tax

A taxation principle aiming to maximize economic efficiency without imposing undue burdens or distortions.

Deadweight Loss

Economic efficiency loss occurring when free market equilibrium is not achieved for a good or service.