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Which of the following is not a tool of monetary policy?

Multiple Choice
open-market operations
changes in banking laws
changes in one or more of the three administered interest rates
the Fed communicating to the public how it intends to manage monetary policy

1 answer

The option that is not a tool of monetary policy is:

changes in banking laws

Changes in banking laws pertain more to regulatory policy rather than direct monetary policy tools, which focus on controlling the money supply and interest rates. The other options listed are indeed tools of monetary policy used by central banks, such as the Federal Reserve (the Fed).