The primary tool utilized by the Federal Reserve today in conducting monetary policy is
A)the discount rate.
B)reserve requirements.
C)open market operations.
D)selective credit controls.

Question

Quizplus · Accepted Answer

Open market operations involve the buying and selling of government securities in order to manage the money supply and influence interest rates. This is the primary tool utilized by the Federal Reserve today in conducting monetary policy. The discount rate and reserve requirements are also important tools but are used less frequently. Selective credit controls are rarely used by the Federal Reserve.

The Primary Tool Utilized by the Federal Reserve Today in Conducting