Which of the following is a primary policy tool of the Federal Reserve?
A) The federal funds rate
B) Open market operations
C) The prime rate
D) The money supply

Question

Quizplus · Accepted Answer

Open market operations involve the buying and selling of government securities in the open market by the Fed to influence the money supply and interest rates, making it a primary policy tool. The federal funds rate and the prime rate are interest rates determined by market forces, while the money supply can be influenced by a variety of factors and is not solely controlled by the Fed.

Which of the Following Is a Primary Policy Tool of the Federal