Which of the following is NOT a Monetary policy tool available to the FED?

Question

BlackTom AI · Accepted Answer

To assess which item is not a monetary policy tool used by the FED, we need to recall what the FED can directly deploy to influence money supply and rates.
Option 1: Open market operations. This is a core tool in which the Fed buys or sells Treasuries to influence reserves and the federal funds rate. It is definitely a monetary policy instrument.
Option 2: The federal funds rate. This is the target rate the Fed aims to influence through its tools, not a tool itself. It represents the policy stance or objective rather than a mechanism like purchases, lending, or reserve changes. This distinction makes it a target rather than a tool.
Option 3: Discount loans. The discount window provides banks with overnight liquidity, and the Fed uses this facility as a monetary policy tool to affect short-term credit conditions and reserves. It is a direct tool.
Option 4: Interest on Reserve Balances. Paying interest on reserves held at the Fed is used to influence the floor level for the federal funds rate and to manage reserve incentives. This is another official tool.
In summary, open market operations, discount loans, and interest on reserve balances are direct instruments the Fed uses to implement policy, whereas the federal funds rate is the policy target they strive to achieve using those tools.

Which of the following is NOT a Monetary policy tool available to the FED?单项选择题

类似问题

Which of the following agencies has primary responsibility for setting monetary policy and regulating the banking system?

Why is psychology important in a country’s monetary policy?

If the economy is producing an equilibrium real output that is less than potential output, a(n):

The RBA can stimulate the economy by _, all of which shifts the aggregate demand to the _.

If the cash rate is increased, the RBA is trying to:

Select the option that correctly shows all the missing words in the following sentence.Monetary policy is the management of ____ by changing money _ for the purpose of adjusting aggregate ___.

According to the graph, contractionary monetary policy will cause an economy that is initially at full-employment output to go from equilibrium _ to equilibrium __ in the short run.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单