Which of the following is not an instrument of monetary policy ?
Correct answer: A. Taxation
- A. Taxation
- B. Bank rate
- C. Open-market operations
- D. Credit rationing
Explanation
Taxation is a fiscal policy instrument used by the government, whereas bank rate, open-market operations and credit rationing are tools used to influence money and credit conditions. Therefore, taxation is the exception.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
In which capacity does a person stand to gain from deflation ?
Which is the most widely used tool of monetary policy ?
Open market Operation is ?
When banks prepare their balance sheets. They show the money lent in ?
Which of the following would cause income to become more unequal ?
Which property the paper money does not process ?