In its current execution of monetary policy,the Fed does not usually have a specific _____________ target,but rather it tries to target a specific ________________.
A) money supply; federal funds rate
B) federal funds rate; money supply
C) money supply; discount rate
D) required reserves ratio; discount rate

Question

Quizplus · Accepted Answer

The Federal Reserve typically targets the federal funds rate rather than a specific money supply target. This approach allows for more direct control over short-term interest rates, influencing economic activity and inflation.

In Its Current Execution of Monetary Policy,the Fed Does Not