The Four Distinct Tools of Policy Used by the Fed

The four distinct tools of policy used by the Fed to influence the money supply are

A) interest rates, government spending, tax rates, and government transfer payments.
B) open market operations, discount policy, reserve requirement policy, and adjusting interest on reserves.
C) open market operations, adjusting the exchange rate of the dollar, government purchases, and reserve requirement policy.
D) reserve requirement policy, discount policy, interest rates, and tax rates.