The Fed carries out monetary policy chiefly by influencing the demand for reserves schedule. a. True...

Question

Question

The Fed carries out monetary policy chiefly by influencing the demand for reserves schedule.

	a.	True
	b.	False

Answer 1

Answer #1

Answer

False

There are many tools which the Fed uses to control the money supply, interest rate, and stabilize economy.

The main two are:

Discount rate: at which Fed lends to banks

Open market operation: where Fed sell and buy bonds

Answer 2

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