Which of the following tools is NOT a policy tool of the Fed?
A) the tax rate on interest income
B) last resort loans
C) open market operations
D) the reserve ratio

Question

Quizplus · Accepted Answer

The tax rate on interest income is a fiscal policy tool that is controlled by the government, not the Fed. The other options listed are tools used by the Fed to implement monetary policy.

Which of the Following Tools Is NOT a Policy Tool