The Fed can conduct monetary policy in all the following ways except:
A)changing the reserve requirement.
B)changing the discount rate.
C)executing open market operations.
D)running deficits.

Question

Quizplus · Accepted Answer

Running deficits is a fiscal policy tool, not a monetary policy tool. Monetary policy involves managing the nation's money supply and interest rates, typically conducted by a central bank like the Federal Reserve. Running deficits pertains to government spending exceeding its revenue, which is related to fiscal policy and managed by the government's treasury or finance department.

The Fed Can Conduct Monetary Policy in All the Following