ECONOMICS
FEDERAL RESERVE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
discount rate
|
|
|
balance accounts
|
|
|
open market operations
|
|
|
reserve requirement
|
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: -Based on the above discussion we can conclude that, reducing fiscal deficit is not an objective of the Monetary Policy of Reserve Bank of India.
Detailed explanation-4: -10. Which of the following words is not used in Monetary Policy? Explanation: The term blue chip is not related to monetary policy. Blue chip is an adjective given to a company which provides assured profit.
Detailed explanation-5: -The monetary policy tool is implemented by the RBI through open market operations, bank rate, CRR, SLR, the repo rate, reverse repo rate.