Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. explain the 4 tools of monetary policy and how the

Explain the 4 tools of monetary policy and how they impact interest rates, financial markets, housing,...

70.2K

Verified Solution

Question

Finance

Explain the 4 tools of monetary policy and how they impactinterest rates, financial markets, housing, and GDP

Answer & Explanation Solved by verified expert
4.0 Ratings (641 Votes)
Monetary policy is the macroeconomic policy laid down by the central bank It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation consumption growth and liquidity The four tools of monetary policy are Discount rate Reserve requirements Open market operations interest on reserves The discount rate is the interest rate Reserve Banks charge commercial banks for shortterm    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Explain the 4 tools of monetary policy and how they impactinterest rates, financial markets, housing, and GDP

Other questions asked by students

Q

2. The Queen City Style Company makes several lines of skirts, dresses, and sport coats. Recently,...

Operations Management
Q

Sort the following reactions or processes based on whether they use energy from adenosine triphosphate (ATP),...

Chemistry
Q

The existence of a math genewas reported by Benbow and Stanley in their original researchwas...

Biology
Q

The G string on a guitar is 49 cm long and has a fundamental frequency...

Physics
Q

A person invests $1625 into a retirement account, with an interest rate of 0.9%compounded quarterly....

Basic Math
Q

Determine the mean, median, mode and midrange of the set of data.59, 52, 39, 50,...

Basic Math
Q

For the given position vectors r t compute the tangent velocity vector r t for...

Calculus
Q

7 Which value for q below is a solution to the inequality 3 q 4...

Algebra
Q

P11-3A The stockholders' equity accounts of Castle Corporation on January 1, 2019, were as follows....

Accounting
Q

Carver Corporation produces a product which sells for $40. Variable manufacturing costs are $18 per...

Accounting
Q

Which of the following inventory costing methods brings in the highest cost of goods sold...

Accounting
Q

1) List the liabilities that relate to phone and laptop service business ...

Accounting