Discount rate policy is most often
A)lowered when market rates rise.
B)used to actively control the money supply.
C)the Fed's primary tool of monetary control.
D)passively changed by the Fed to follow market rates.

Question

Quizplus · Accepted Answer

The discount rate is typically adjusted by the Federal Reserve to align with prevailing market interest rates, rather than being used as an active tool for controlling the money supply.

Discount Rate Policy Is Most Often