Which is NOT a major tool used by the Fed to control the money supply?
A) open market operations
B) discount rate lending
C) changing bank deposits
D) paying interest on reserves

Question

Quizplus · Accepted Answer

The Fed does not have the authority to directly change bank deposits, therefore it is not a major tool used by the Fed to control the money supply. The other tools listed (open market operations, discount rate lending, and paying interest on reserves) are actively used by the Fed to control the money supply.

Which Is NOT a Major Tool Used by the Fed