Which monetary policy tool does the Fed use most infrequently?

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Which monetary policy tool does the Fed use most infrequently?

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Answer 1

Answer #1

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The Monetary policy tool that the Fed uses most infrequently is changing reserve requirement.

The four monetary policy tools are:

Open market operations

Discount Rate

Reserve requirement

Interest on reserve

Open market operations is the most often used monetary policy tool and least used is changing Reserve requirement. The Fed rarely changes reserve requirement.

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Answer 2

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Which monetary policy tool does the Fed use most infrequently?

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Which monetary policy tool does the Fed use most infrequently?

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