The number of tools the Federal Reserve uses to manage the money supply is:
A5
B3
C2
D4
Answer & Solution
Correct answer: B. 3
1. Open market operations are the first.
2. Reserve requirements and the discount rate complete the set.
3. So there are 3 tools.
_Source: OpenStax Introduction to Business 2e, Chapter 15, Understanding Money and Financial Institutions._
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