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the government restricts the amount of money that banks can lend.

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Q: Which of the following tools is an example of monetary policy?
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Which is an example of a monetary policy?

The government restricts the amount of money that banks can lend. (APEX)


Is the federal reserve responsible for using monetary policy tools?

yes


List and describe two tools of monetary policy available to the Fed?

The Three Tools of Monetary Policy: 1. Required Reserve Ratio 2. Discount Rate 3. Open Market Operations


What are the tools of monetary and fiscal policy in India?

Monetary policy is a tool in India that is used the Reserve Bank to regulate interest rates. Fiscal policy in India is a tool that regulates their economy.


The four main tools of monetary policy are?

The four main tools of monetary policy are: 1) open-market operations 2) changing the reserve ratio 3) changing the discount rate 4) the use of term auction facility


What is tools of monetary policy?

The principal tool is the discount rate (the rate the Federal Reserve System charges banks).


Which of the monetary policy tools can alter both the level of excess reserve and the money multiplier?

the federal funds rate


What are the federal reserve system's tools of monetary policy?

The three tools of the Federal Reserve are open market operations, discount rate, and reserve requirement.


The three tools the Federal Reserve uses to enact monetary policy are?

the three tools the Federal Reserve uses to enact monetary policy are setting the interest rate charged to commercial banks on loans from the Federal Reserve. Setting the reserve rate. The buying and selling of Treasury bonds and other government-backed securities


Who administers Fiscal Policy?

The fiscal policy, which is, controlling the level of taxes and government spending, is left to the government. On the other hand, the monetary policy, that is, the tools fr controlling money supply in the economy, is controlled by the central bank.


Difference between fiscal and monetary policy?

Monetary policy is one that containes money. this is the release and subsctraction of amount of money in economy by variuos tools (like loans to banks). Fiscal policy is government policy of taxation and subsidising (and goverment consumption). in lamens terms it is the taxing and wellfare of the nation.


What is Setting monetary policy?

Monetary policy rests on the relationship between the rates of interest in an economy, that is, the price at which money can be borrowed from, and the total availability of money. Monetary policy make use of a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authorities has the ability to change the money supply and thus influence the interest rates for the sake policy goals.