The basic policy instruments that the Fed uses to execute monetary policy include all of the following EXCEPT
A)changing reserve requirements
B)changing the discount rate
C)conducting closed market operations
D)all of the above are monetary policy instruments

Question

Quizplus · Accepted Answer

The correct term is "open market operations," not "closed market operations." The Fed uses open market operations, changing reserve requirements, and changing the discount rate as monetary policy instruments.

The Basic Policy Instruments That the Fed Uses to Execute