The basic policy instruments that the Fed uses to execute monetary policy include all of the following except
A) changing reserve requirements.
B) changing the lending/discount rate.
C) conducting closed market operations.
D) conducting open market operations.

Question

Quizplus · Accepted Answer

The basic policy instruments that the Fed uses to execute monetary policy include changing reserve requirements, changing the lending/discount rate, and conducting open market operations. Closed market operations are not a policy instrument used by the Fed.

The Basic Policy Instruments That the Fed Uses to Execute