The main tools that the Fed can use to alter the reserves of commercial banks are the required-reserve ratio and the following, except:
A) Exchange rate
B) Discount rate
C) Interest on reserves
D) Open market operations

Question

Quizplus · Accepted Answer

The exchange rate is not a tool that the Fed uses to alter the reserves of commercial banks. The required-reserve ratio, discount rate, interest on reserves, and open market operations are all tools the Fed can use to influence the reserves of commercial banks.

The Main Tools That the Fed Can Use to Alter