Which of the following constitutes monetary policy as performed by the Federal Reserve?
A) Monitoring financial institutions
B) Controlling certain key interest rates
C) Indirectly controlling the money supply
D) All of the above

Question

Quizplus · Accepted Answer

Monetary policy as performed by the Federal Reserve includes all three options listed: monitoring financial institutions, controlling certain key interest rates, and indirectly controlling the money supply. This is done through a variety of tools and actions, such as open market operations, setting reserve requirements, and adjusting the federal funds rate.

Which of the Following Constitutes Monetary Policy as Performed by the Federal