The major tools that the Fed uses to control the money supply include I. controlling the amount of government spending. II. discount rate lending. III. open market operations.
A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

The Fed uses discount rate lending and open market operations to control the money supply. Controlling the amount of government spending is done by the government itself, not the Fed.

The Major Tools That the Fed Uses to Control the Money