The Three Main Monetary Policy Tools Used by the Federal

question 235

Multiple Choice

The three main monetary policy tools used by the Federal Reserve to manage the money supply are

• A)interest rates,tax rates,and government spending.
• B)tax rates,government purchases,and government transfer payments.
• C)open market operations,discount policy,and reserve requirements.
• D)open market operations,the exchange rate of the dollar against foreign currencies,and government purchases.