Prior to 2008, the Primary Tool Used by the Fed

question 139

Multiple Choice

Prior to 2008, the primary tool used by the Fed to control the money supply was

• A) the manipulation of the required reserve ratio banks must hold against their checking deposits.
• B) the extension of loans to financial institutions.
• C) the buying and selling of stocks and corporate bonds.
• D) the buying and selling of U.S. Treasury securities.

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