ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Open Market Operations
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Discount Rate
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Reserve Requirement
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Government Spending
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Detailed explanation-1: -Which of the following is NOT one of the Fed’s monetary policy tools? The answer is c) changing the coupon rate. The discount rate, the required reserve ratio is determined by the Fed and the open market operation is also conducted by FED.
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.