Answer to Question #60011 in Macroeconomics for Ryan

Question #60011
Which of the following would not be considered a conventional monetary policy by the Fed: (a) selling T-Bills (b) purchasing Mortgage Bonds (c) lowering the discount rate (d) changing the reserve requirement
1
Expert's answer
2016-05-20T08:59:03-0400
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an inflation or interest rate to ensure price stability and general trust in the currency.
Purchasing mortgage bonds would not be considered a conventional monetary policy by the Fed, so the right answer is (b) purchasing Mortgage Bonds.

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