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Which of the following instruments is NOT used by the Federal Reserve to change the money supply?
A) the discount rate
B) the required reserve ratio
C) the federal tax code
D) open market operationsAnswer: C

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Tutorconsortium410idn

The federal tax code is not used by the Federal Reserve to change the money supply.

How Do Taxes Work?

Taxes are compulsory payments made by a government organization, whether local, regional, or federal, to people or businesses. Tax revenues are used to fund a variety of government initiatives, such as Social Security and Medicare as well as public infrastructure and services like roads and schools.

Its advantages?

A tax is a monetary fee that a nation's central or state governments levy on its population to fund economic development. Depending on how they are paid to the authorities, taxes can be classified as either direct or indirect. Direct taxes include, amongst many others, income taxes, corporate taxes, and capital gains taxes.

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