Which of the following is NOT one of the Fed's monetary policy tools?
A)changing the discount rate
B)conducting open market purchases of government securities
C)changing the coupon rate
D)changing the required reserve ratio
E)conducting open market sales of government securities

Question

Quizplus · Accepted Answer

Changing the coupon rate is not a tool used by the Fed in conducting monetary policy. The coupon rate is the interest rate paid on a bond, and is determined at the time of issuance. The Fed's monetary policy tools include changing the discount rate, conducting open market purchases and sales of government securities, and changing the required reserve ratio for banks.

Which of the Following Is NOT One of the Fed's