The tools of monetary policy include all of the following except open market ope

Question

The tools of monetary policy include all of the following except open market operations. Discount rate reserve requirements prime interest rates. The buying and selling of securities from banks and investors is handled through the open market operations. discount rate. reserve requirements. prime interest rates. When the Federal Reserve wants to stimulate the economy it can undertake a contractionary monetary policy and sell securities. a contractionary monetary policy and buy securities. an expansionary monetary policy and sell securities. an expansionary monetary policy and buy securities. The economy is heating up and concerns of inflation are present. To ease this situation Federal Reserve can undertake a contractionary monetary policy and sell securities. a contractionary monetary policy and buy securities. an expansionary monetary policy and sell securities. an expansionary monetary policy and buy securities.

Explanation / Answer

17. D

18. A

19. B

20. A

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