In order to change the money supply,the Fed might use which of the following tools?
A)Discount window
B)Reserve requirement
C)Open market operations
D)The Fed could use all of these

Question

Quizplus · Accepted Answer

To change the money supply, the Fed has three main tools at its disposal: discount window, reserve requirement, and open market operations. The discount window allows banks to borrow funds from the Fed, changing the amount of reserves held by banks and therefore affecting the money supply. The reserve requirement is the amount of funds that banks are required to hold in reserve, and changing this requirement can also impact the money supply. Finally, open market operations involve the buying and selling of government securities by the Fed, which affects the amount of money in circulation. Therefore, the Fed could use any or all of these tools to change the money supply, making choice D the correct answer.

In Order to Change the Money Supply,the Fed Might Use