The three tools used by the Federal Reserve to manage monetary policy are reserve requirements, the prime rate, and the discount rate.

Question

Quizplus · Accepted Answer

The three main tools used by the Federal Reserve to manage monetary policy are reserve requirements, open market operations, and the discount rate. The prime rate is not a tool of the Federal Reserve; it is the interest rate that banks charge their most creditworthy customers.

The Three Tools Used by the Federal Reserve to Manage