Which of the following is NOT an example of monetary policy?

Question

a. The Federal Reserve reduces the reserve requirement.
b. The Federal Open Market Committee decides to sell bonds.
c. The Federal Reserve facilitates bank transactions by clearing checks.
d. The Federal Open Market Committee decides to buy bonds.

Answer 1

c. The Federal Reserve facilitates bank transactions by clearing checks.

While facilitating bank transactions and clearing checks is part of the Federal Reserve's operational role, it is not an example of monetary policy. Monetary policy refers specifically to actions taken to manage the money supply and interest rates to influence economic activity. The other options directly relate to such actions.