Answer: changes in banking laws
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Which is not a tool of monetary policy?
The four main tools of monetary policy are the discount rate the reserve ratio the term auction facility and open-market operations Which of the following is not a tool of monetary policy
The interest rate decreases the nominal GDP increases. The interest rate will fall when the: Quantity of money supplied exceeds the quantity of money demanded . Assume that the stock of money is determined by the Federal Reserve and does not change when the interest rate changes.
Start studying Econ: Unit 7. Learn vocabulary terms and more with flashcards games and other study tools . Search. ... to determine the nation's monetary policy in order to help encourage a healthy economy. ... Which of the following is NOT a tool of monetary policy ? Increasing federal spending.
Start studying econ practice exam three. Learn vocabulary terms and more with flashcards games and other study tools . Search. Create. Log in Sign up. Log in Sign up. ... Which of the following is not a basic monetary policy tool used by the Fed? A. The discount rate. B. The reserve requirement. C. Taxes. D. Open-market operations.
Monetary policy tool . Money growth in the economy can occur through the multiplier effect resulting from the reserve ratio. For example a reserve ratio of 20% will result in 80% of any given initial deposit being loaned out and if the process of loaning is assumed to continue the maximum increase in money expansion specific to an initial deposit at a 20% reserve rat...
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