Question

    Which of the following is a tool of monetary

    policy?
    A Tax rates Correct Answer Incorrect Answer
    B Government subsidies Correct Answer Incorrect Answer
    C Open Market Operations Correct Answer Incorrect Answer
    D Trade tariffs Correct Answer Incorrect Answer
    E Export duty Correct Answer Incorrect Answer

    Solution

    Open Market Operations refer to the buying and selling of government securities by the central bank to regulate money supply in the economy, which is a key tool of monetary policy.

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