Which of the following is not considered a monetary policy tool of the Federal Reserve?
A) Changing float requirements
B) Open market operations
C) Changing the discount rate
D) Changing reserve requirements
E) All of the above are considered to be monetary policy tools

Question

Quizplus · Accepted Answer

Float requirements refer to the length of time it takes for a check to clear between banks, and although the Federal Reserve does have the ability to change float requirements, it is not typically considered a monetary policy tool of the Fed. The other options listed - open market operations, changing the discount rate, and changing reserve requirements - are all widely recognized as monetary policy tools used by the Federal Reserve to influence the economy.

Which of the Following Is Not Considered a Monetary Policy