Which of the following is not a policy instrument of the Fed?
A)Changing reserve requirements
B)Open-market operations
C)Changing the discount rate
D)Changing the federal government budget deficit

Question

Quizplus · Accepted Answer

The Fed does not have the authority to change the federal government budget deficit. This is outside of the Fed's control and is determined by the actions of Congress and the Executive Branch. The other choices, changing reserve requirements, open-market operations, and changing the discount rate, are all policy instruments that the Fed uses to influence the economy.

Which of the Following Is Not a Policy Instrument of the Fed