Which of the following is a tool that is used by the Fed to control the quantity of money?
A) open market operations
B) excess reserves
C) government expenditure multiplier
D) real interest rate

Question

Quizplus · Accepted Answer

Open market operations are a tool used by the Federal Reserve (the Fed) to control the quantity of money in the economy by buying or selling government securities. This influences the federal funds rate, which in turn affects the amount of money and credit in the economy.

Which of the Following Is a Tool That Is Used