The Fed can use all of the following except ____________ to change the lending capacity of the banking system.

Question

Quizplus · Accepted Answer

The Fed can use the reserve requirement and open market operations to change the lending capacity of the banking system. However, the excess reserve requirement is not a tool used by the Fed to control lending capacity. Excess reserves are the reserves held by banks above the required reserve amount and are not directly influenced by the Fed's policy tools.

The Fed Can Use All of the Following Except ____________