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 to regulate the money supply. This involves buying or selling government bonds on the open market, which in turn affects the amount of money in circulation.

Answer options A and B are also tools the Fed can use to regulate the money supply, but they are not as frequently employed as open market operations. Option D, changing the fed funds rate, is another important tool the Fed uses to influence the economy, but it does not directly regulate the money supply. Option E, printing new money, is not a commonly used method of regulating the money supply and is typically only used in extreme circumstances, such as during times of war or economic crisis.

Which Means Does the Fed MOST Frequently Employ to Regulate