Which of the following is NOT a policy tool of the Federal Reserve System?
A) the amount of required reserves held by member banks
B) the interest rate charged by the Fed for loans to member banks
C) open market operations
D) the tax rate imposed on interest income

Question

Quizplus · Accepted Answer

The tax rate imposed on interest income is not a policy tool of the Federal Reserve System. The Fed's main policy tools are the amount of required reserves held by member banks, the interest rate charged by the Fed for loans to member banks, and open market operations.

Which of the Following Is NOT a Policy Tool of the Federal