The reserve requirement refers to which tool of monetary policy?
Understand the Problem
The question is asking for clarification on the concept of reserve requirement and how it relates to monetary policy. Specifically, it seeks to identify which tool of monetary policy it represents.
Answer
A tool of monetary policy.
The final answer is the reserve requirement is a tool of monetary policy.
Answer for screen readers
The final answer is the reserve requirement is a tool of monetary policy.
More Information
The reserve requirement is one of the primary tools used by central banks to control the money supply and influence interest rates in an economy.
Sources
- Monetary Policy Meaning, Types, and Tools - Investopedia - investopedia.com
- Reserve Requirements - Federal Reserve Board - federalreserve.gov
- Reserve requirement - Wikipedia - en.wikipedia.org
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