Which of the Following Is Not a Tool of Monetary

question 125

Multiple Choice

Which of the following is not a tool of monetary policy?

• A)open market operations
• B)reserve requirements
• C)changing the discount rate
• D)increasing the government budget deficit

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Definitions:

Troubled Asset Relief Program

A program initiated by the U.S. government in 2008 to purchase toxic assets and equity from financial institutions to strengthen the financial sector.

U.S. Financial System

This system encompasses all the financial institutions in the United States, including banks, credit unions, and the Federal Reserve, responsible for monetary policy, financial services, and regulation.

Postwar Period

The era immediately following the end of a significant war, often characterized by reconstruction, political realignment, and attempts to address the causes of the conflict.

Iraq War

Also known as the Second Gulf War, it was a conflict that began in 2003 with the invasion of Iraq by a coalition led by the United States, aiming to disarm Iraq of weapons of mass destruction and end Saddam Hussein's regime.