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Which of the following is not a basic monetary policy tool used by the Fed?

A. the reserve requirement
B. taxes
C. open-market operations
D. the discount rate


Sagot :

Final answer:

The Federal Reserve's key tools are open-market operations, reserve requirements, and the discount rate.


Explanation:

The Fed's main monetary policy tools include open-market operations, reserve requirements, and the discount rate. Open-market operations involve the buying and selling of government bonds, while reserve requirements determine the level of reserves banks must hold, and the discount rate is the interest rate charged on loans to commercial banks.


Learn more about Federal Reserve monetary policy tools here:

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