# An example of an expansionary monetary policy is ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: An example of an expansionary monetary policy is ? Correct Answer: D. the Central bank buying government securities in the open market. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# An example of an expansionary monetary policy is ?

Direct Answer & Quick Reference

The correct option is **D. the Central bank buying government securities in the open market**.

A. a reduction in the taxes banks pay on their profits.

B. an increase in the required reserve ratio

C. an increase in the discount rate

D. the Central bank buying government securities in the open market **(Correct Answer)**

Verified Key: D. the Central bank buying government securities in the open market
Solved by 5,930+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/an-example-of-an-expansionary-monetary-policy-is-5e28c1fb-bbd8-4e28-a429-98b54a3a84fe*
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