The Fed has several tools by which it influences, indirectly and to a greater or lesser extent, the amount of money in the economy and the general level of interest rates. Which of the below is NOT one of these tools?

Question

Quizplus · Accepted Answer

The compound rate is not a tool used by the Fed to influence the amount of money in the economy and interest rates. Reserve requirements, open market operations, and open market repurchase agreements are all tools used by the Fed.

The Fed Has Several Tools by Which It Influences, Indirectly