Question 41 Problem 1 d: Which of the following statements about the Monetary Policy Tools is correct? Open Market Operations are considered to be the most powerful monetary tool while the Discount Rate Rate is the most frequently used and most important tool. The Discount Rate is considered to be the most powerful monetary tool while the Required Reserve Ratio the most frequently used and most important tool. The Required Reserve Ratio is considered to be the most powerful monetary tool while the Discount Rate Rate is the most frequently used and most important tool.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter25: Money, Banking, And The Federal Reserve System
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Question 41
Problem 1 d: Which of the following statements about the Monetary Policy Tools is correct?
Open Market Operations are considered to be the most powerful monetary tool while the Discount Rate Rate
is the most frequently used and most important tool.
The Discount Rate is considered to be the most powerful monetary tool while the Required Reserve Ratio the
most frequently used and most important tool.
The Required Reserve Ratio is considered to be the most powerful monetary tool while the Discount Rate Rate
is the most frequently used and most important tool.
The Required Reserve Ratio is considered to be the most powerful monetary tool while Open Market
Operations are the most frequently used and most important tool.
Transcribed Image Text:Question 41 Problem 1 d: Which of the following statements about the Monetary Policy Tools is correct? Open Market Operations are considered to be the most powerful monetary tool while the Discount Rate Rate is the most frequently used and most important tool. The Discount Rate is considered to be the most powerful monetary tool while the Required Reserve Ratio the most frequently used and most important tool. The Required Reserve Ratio is considered to be the most powerful monetary tool while the Discount Rate Rate is the most frequently used and most important tool. The Required Reserve Ratio is considered to be the most powerful monetary tool while Open Market Operations are the most frequently used and most important tool.
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