Which of the following policy tools does the Fed use most frequently?
A)open market operations
B)changes to the reserve requirement
C)changes to margin requirements
D)changes to the discount rate

Question

Quizplus · Accepted Answer

Open market operations are the most frequently used policy tool by the Fed. This involves buying or selling government securities to influence the amount of money in circulation and interest rates. Changes to reserve and margin requirements and the discount rate are less frequently used tools.

Which of the Following Policy Tools Does the Fed Use