Which of the following tools of the Fed likely acts most quickly and predictably on the money supply?
A) discount rate
B) reserve requirement
C) open-market operations
D) selective credit controls

Question

Quizplus · Accepted Answer

Open-market operations involve the buying and selling of government securities by the Fed in order to influence the money supply. This tool is usually the most effective and predictable in its impact on the money supply.

Which of the Following Tools of the Fed Likely Acts