Which of the following policy tools is directly controlled by the Trading Desk at the Federal Reserve Bank of New York?

Question

Quizplus · Accepted Answer

The Trading Desk at the Federal Reserve Bank of New York directly controls open market sales and purchases, which involve buying and selling government securities on the open market to influence the supply of reserves in the banking system and affect short-term interest rates. The other policy tools listed are ultimately determined by the Federal Reserve's Board of Governors, although the Trading Desk may implement changes in the discount rate and interest rate on required reserves as directed by the Board.

Which of the Following Policy Tools Is Directly Controlled by the Trading