The Board of Governors of the Federal Reserve establishes monetary policy by:
A) setting reserve requirements, altering the prime rate, and through federal open market operations.
B) setting reserve requirements, altering the discount rate, and through federal open market operations.
C) setting reserve requirements, altering the discount rate, and through international currency transactions.
D) setting bank profitability ratios, altering the discount rate, and through federal open market operations.
E) none of the above
Correct Answer:
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