Which of the following policy tools does the Fed use most frequently?
A)Open market operations
B)Reserve requirement
C)Margin requirements
D)The discount rate

Question

Quizplus · Accepted Answer

Open market operations are the most frequently used tool by the Federal Reserve to control the money supply and influence interest rates. This involves the buying and selling of government securities in the open market to expand or contract the amount of money in the banking system.

Which of the Following Policy Tools Does the Fed Use