Which of the following is not a monetary policy tool of the Fed?
A) changing the required reserve ratio
B) changing the discount rate
C) setting the price level and the market rate of interest
D) conducting open market operations

Question

Quizplus · Accepted Answer

The Fed does not have control over setting the price level and market rate of interest as they are determined by market forces. The other options, changing the required reserve ratio, changing the discount rate, and conducting open market operations, are all tools that the Fed uses to implement and adjust monetary policy.

Which of the Following Is Not a Monetary Policy Tool