Which of the following policies is NOT in the Fed's monetary toolbox?
A)Buying government bonds
B)Increasing the quantity of reserves
C)Lending reserves to banks
D)Issuing a bank run

Question

Which of the following policies is NOT in the Fed's monetary toolbox?
A)​Buying government bonds
B)​Increasing the quantity of reserves
C)​Lending reserves to banks
D)​Issuing a bank run

Quizplus · Accepted Answer

Issuing a bank run is not a policy tool in the Fed's monetary toolbox, as it would actually worsen economic conditions rather than improving them. The other choices, buying government bonds, increasing reserves, and lending reserves to banks, are all commonly used tools by the Federal Reserve to implement monetary policy.

Which of the Following Policies Is NOT in the Fed's