Which means does the Fed most frequently employ to regulate the money supply?

Question

Quizplus · Accepted Answer

The Fed most frequently employs open market operations, which involve buying or selling securities in the open market to influence the amount of reserves in the banking system, and thereby the money supply. The other options are also tools the Fed uses to regulate the money supply, but they are not used as frequently as open market operations. Changing the reserve requirement ratio involves adjusting the amount of reserves banks are required to hold, which can be more disruptive to the banking system. Changing the discount rate is less frequently used and has less of an impact on the money supply. Changing the fed funds rate is a tool used to influence short-term interest rates and is indirectly related to the money supply. Printing new money is not a primary tool the Fed uses to regulate the money supply as it can lead to inflation.

Which Means Does the Fed Most Frequently Employ to Regulate