Which of the following methods for influencing the federal funds rate has not been used by the Federal Reserve in the past 20 years?
A) Changing the quantity of reserves supplied
B) Changing the reserve requirement
C) Changing the interest rate paid on reserves
D) All of the above have been used in the past 20 years

Question

Quizplus · Accepted Answer

Changing the reserve requirement has not been a primary tool for influencing the federal funds rate in the past 20 years. The Federal Reserve has more frequently adjusted the quantity of reserves supplied through open market operations and changed the interest rate paid on reserves as methods to influence the federal funds rate.

Which of the Following Methods for Influencing the Federal Funds