What is the main policy tool available to the Federal Reserve?
A) the reserve rate
B) the discount rate
C) the federal funds rate
D) printing money
E) the mortgage rate

Question

Quizplus · Accepted Answer

The main policy tool available to the Federal Reserve is the federal funds rate, which is the interest rate at which banks can lend or borrow from each other overnight. The Fed sets the target range for the federal funds rate and can adjust it to manage inflation, economic growth, and employment levels.

What Is the Main Policy Tool Available to the Federal