In: Economics
Which of the following is NOT an example of monetary policy?
Option C is not an example of monetary policy.
Monetary policy is the discretionary policy by the central bank of a nation that influences the economy's money supply and interest rate. The major tools include reserve requirements and open market sales, and the purchase of government bonds. When the Federal Reserve facilitates transactions by clearing cheques, it will not influence the money supply and cannot be considered a monetary policy tool.