Which is NOT used by the Fed to control the money supply?
A) open market operations
B) discount rate lending
C) paying an interest rate on bank reserves held at the Fed
D) prime interest rate lending

Question

Quizplus · Accepted Answer

The prime interest rate is not directly controlled by the Fed and is instead set by individual banks based on market factors. The Fed uses open market operations, discount rate lending, and paying an interest rate on bank reserves held at the Fed to control the money supply.

Which Is NOT Used by the Fed to Control the Money