Open-market operations,changes in reserve requirements,changes in the discount rate,and changes in the interest rate on reserves are known as
A)goals.
B)intermediate targets.
C)instruments.
D)derivatives.

Question

Quizplus · Accepted Answer

Open-market operations, changes in reserve requirements, changes in the discount rate, and changes in the interest rate on reserves are all tools or instruments that the Federal Reserve uses to implement monetary policy. These actions are taken to influence the money supply, interest rates, and ultimately the economy as a whole. They are not goals or intermediate targets, nor are they derivatives.

Open-Market Operations,changes in Reserve Requirements,changes in the Discount Rate,and Changes