The Fed's primary tools of monetary policy include all the following except
A) changing the discount rate.
B) open market operations.
C) adjusting reserve requirements.
D) changes in the Federal Funds rate.

Question

Quizplus · Accepted Answer

The Federal Funds rate is influenced by the Fed's monetary policy actions but is not a direct tool. The Fed uses open market operations, the discount rate, and reserve requirements to influence the Federal Funds rate indirectly.

The Fed's Primary Tools of Monetary Policy Include All the Following