Question

Which of the following is not an example of monetary policy? a. Increasing taxes b. Decreasing reserve requirement c. Raising discount rate d. Buying securities.

Answer 1

The answer is a. Increasing taxes.

Step-by-step explanation:

Increasing taxes is an example of fiscal policy, which is the process by which the government uses its spending and taxation powers to influence the economy. Fiscal policy is separate from monetary policy, which is the process by which the central bank uses its monetary tools to influence the supply of money and credit in the economy.