Which of the following is not a tool used by the Fed to control the money supply?

Question

Quizplus · Accepted Answer

The Fed funds rate is not a tool used by the Fed to control the money supply, but rather is the interest rate at which banks lend reserves to each other overnight. The reserve requirement, open market operations, and the discount rate are all tools used by the Fed to control the money supply. The reserve requirement is the amount of funds that banks are required to hold in reserves, which affects the amount of money they can lend out. Open market operations involve the Fed buying or selling government securities in order to increase or decrease the money supply. The discount rate is the interest rate at which banks can borrow funds directly from the Fed.

Which of the Following Is Not a Tool Used by the Fed