What is the most direct method the Fed uses to change the monetary base?

Question

Quizplus · Accepted Answer

The most direct method the Fed uses to change the monetary base is through open market operations, which involves buying or selling government securities in the open market. When the Fed buys securities, it injects reserves into the banking system and expands the monetary base, and when it sells securities, it withdraws reserves and contracts the monetary base. Changing the required reserve ratio, federal funds rate or discount loans can also affect the monetary base indirectly, but open market operations are the most direct and powerful tool.

What Is the Most Direct Method the Fed Uses to Change