The "tools" of monetary policy, whether "viable" or not, include all the following except
A) changing the discount rate.
B) open market operations.
C) changes in reserve requirements.
D) changes in the Federal Funds rate.

Question

Quizplus · Accepted Answer

The Federal Funds rate is a target interest rate set by the Federal Reserve, not a direct tool of monetary policy. The tools include changing the discount rate, open market operations, and changes in reserve requirements.

The "Tools" of Monetary Policy, Whether "Viable" or Not, Include