The tools at the disposal of the Fed for changing the quantity of money do NOT include
A) increasing the number of commercial banks.
B) changing discount rates.
C) open market operations.
D) changing the required reserve ratio.

Question

Quizplus · Accepted Answer

Increasing the number of commercial banks is not a tool that the Fed can utilize to change the quantity of money in circulation. It can, however, change the discount rate, conduct open market operations, and change the required reserve ratio.

The Tools at the Disposal of the Fed for Changing