Politics

Question

Which action is an example of an expansionary monetary policy?

• A. Raising the discount rate

B. Raising the reserve requirement

O C. Lowering the interest on reserve rate

• D. Selling Treasury securities

Answer

C. Lowering the interest on reserve rate

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Expansionary monetary policy is a type of economic policy that is used to increase the money supply in an economy. This is usually done by lowering interest rates...