Discuss Forum
1.
Which of the following is a monetary policy instrument?
- A. Fiscal deficit
- B. Fiscal deficit
- C. Fiscal deficit
- D. Fiscal deficit
Answer: Option D
Explanation:
The Federal Reserve's three instruments of monetary policy are open market operations, the discount rate and reserve requirements.
Open market operations involve the buying and selling of government securities. ... Open market operations are flexible, and thus, the most frequently used tool of monetary policy
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