The Fed's tools are also known as
A)goals.
B)intermediate targets.
C)instruments.
D)derivatives.

Question

Quizplus · Accepted Answer

The Fed's tools are referred to as instruments, which are the specific policy measures utilized by the Federal Reserve to affect the money supply, interest rates, and ultimately the broader economy. The other options listed (goals, intermediate targets, derivatives) are not accurate descriptions of the Fed's tools.

The Fed's Tools Are Also Known as