Which one of the following is a tool of monetary policy often used by the Fed for altering the reserves of commercial banks?
A) issuing currency
B) check collection
C) open-market operations
D) the required reserve ratio

Question

Quizplus · Accepted Answer

Open-market operations refer to the buying and selling of securities by the Federal Reserve in order to influence the reserves of commercial banks, which affects their ability to issue loans and impact the money supply. The other options listed do not directly impact bank reserves.

Which One of the Following Is a Tool of Monetary