Which of the following is not a method by which the Federal Reserve establishes monetary policy?
A)setting reserve requirements,
B)altering the discount rate,
C)through federal open market operations,
D)setting bank profitability ratios,
E)none of the above

Question

Quizplus · Accepted Answer

Setting bank profitability ratios is not a method by which the Federal Reserve establishes monetary policy. The other options listed are all tools used by the Federal Reserve to influence the money supply and interest rates in the economy.

Which of the Following Is Not a Method by Which