Which of the following is NOT an example of monetary policy? a. The Federal Reserve reduces the reserve requirement. b. The Federal Open Market Committee decides to sell bonds. c. The Federal Open Market Committee decides to buy bonds. d. The Federal Reserve facilitates bank transactions by clearing checks.

Respuesta :

Noowd

Answer:

A

Explanation:

Monetary policy controls the process of drafting, announcing, and enforcing the plans taken by the central bank, currency board, or other competent monetary authority that controls the amount of money in an economy and the channels by which new money is supplied

The statement that cannot be considered an example of monetary policy is A:The Federal Reserve reduces the reserve requirement.

  • Monetary policy  can be regarded as control of the quantity of money which is present in an economy as well as the channels that is needed for  new money to be supplied.

  • It involves the federal to Open Market Committee who bring decision in selling or buying of bonds.

Therefore, option A is correct.

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