The most frequently used monetary device for achieving price stability is:

(i) taxes.

(ii) reserve ratio.

(iii) open-market operations.

(iv) discount rate.

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Beverley SmithLv2

2 Apr 2020

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Related questions

Which of the following is not a monetary policy instrument?

(i) Open-market operations

(ii) Discount rate

(iii) Reserve Ratio

(iv) Changing the banking laws

Which of the following statements are true?: To curb inflation and reduce the money supply the Federal Reserve can: I. Increase the discount rate II. Increase the required reserve ratio III. Decrease the discount rate IV. buy securities in the open market

I, II and IV

I, III, and IV

I, III

I and II

To decrease the money supply, the Federal Reserve could:

(i) lower the required reserve ratio.

(ii) lower the discount rate.

(iii) raise income taxes.

(iv) raise transfer payments.

(v) conduct an open market sale of Treasury securities.