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

Question

Quizplus · Accepted Answer

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

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