The tools of monetary policy available to the Fed include each of the following, except the:

Question

Quizplus · Accepted Answer

The currency-to-deposit ratio is not a tool of monetary policy that the Fed uses. It is a ratio that measures the amount of currency in circulation relative to the amount of deposits in bank accounts. The tools of monetary policy that the Fed uses include adjusting the discount rate, setting a target federal funds rate, and changing reserve requirements for banks.

The Tools of Monetary Policy Available to the Fed Include