Which of the following is NOT a typical tool of monetary policy used by a central bank?

CA Foundation · Business Economics · MTP · January 2025
Which of the following is NOT a typical tool of monetary policy used by a central bank?
(A) A. Open market operations
(B) B. Changing the reserve requirements of commercial banks
(C) C. Adjusting the tax rates in the economy
(D) D. Changing the discount rate

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Adjusting the tax rates in the economy

Topics: Money Market

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