Which is NOT one of the three major tools the Fed uses to control the money supply?
A) discount rate lending and the Term Auction Facility
B) printing paper money
C) open market operations
D) paying interest on reserves held by banks at the Fed

Question

Quizplus · Accepted Answer

Printing paper money is not one of the three major tools that the Fed uses to control the money supply. The other three tools listed are discount rate lending and the Term Auction Facility, open market operations, and paying interest on reserves held by banks at the Fed.

Which Is NOT One of the Three Major Tools the Fed