The tools at the disposal of the Fed for changing the quantity of money do NOT include
A) open market operations.
B) changing the required reserve ratio.
C) changing discount rates.
D) increasing the number of commercial banks.

Question

Quizplus · Accepted Answer

The Federal Reserve does not have the authority to increase the number of commercial banks. Its tools for changing the quantity of money include open market operations, changing the required reserve ratio, and changing discount rates.

The Tools at the Disposal of the Fed for Changing