Monetary policy

Which of the following is not one of the monetary policy instruments?

• Interest rates

• Discount loan

• Tax

• Open market operation

What is the main purpose of monetary policy

• Control inflation rate

• Control government expenditure

• Reduce poverty

• Allocate level of taxes

Suppose government want to increase monetary growth, which option below would BEST achieve that goal?

• Selling bonds in open market operations

• Lowering the discount rate

• Increasing the reserve requirement

• Increasing the discount rate

Who is in charge of Monetary Policy

• The Government

• State Bank of Vietnam

• The States

• The Department of the Treasury

If the Fed wants to reduce the amount of loans a bank can make, then it should adjust...

• Open Market Operations

• The Reserve Ratio

• The Discount Rate

Which of the following scenarios would cause the nation’s money supply to increase?

• Decreasing government spending

• Lowering interest rates

• Raising interest rates

• Selling bonds to investors