BUSINESS ADMINISTRATION
BUSINESS POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of these is NOT a monetary policy tool?
|
|
a. Discount Rate
|
|
|
b. Open Market Operation
|
|
|
c. Balance Accounts
|
|
|
d. Reserve Requirements
|
|
|
Unattempted
|
Explanation:
Detailed explanation-1: -Out of the given options, deficit financing is not a monetary tool.
Detailed explanation-2: -The Fed has traditionally used three tools to conduct monetary policy: reserve requirements, the discount rate, and open market operations. In 2008, the Fed added paying interest on reserve balances held at Reserve Banks to its monetary policy toolkit.
Detailed explanation-3: -The correct answer is option 2, i.e., MSP. MSP is NOT an instrument of RBI’s Monetary Policy.
There is 1 question to complete.