The U.S.Fed "Sets" Interest Rates by

Multiple Choice

The U.S.Fed "sets" interest rates by

A) announcing a desired discount rate and then attempting to keep the federal funds rate two percentage points above it
B) announcing a desired monetary growth rate designed to keep inflation stable
C) buying or selling Treasury bills
D) announcing its intentions far in advance since transparency allows financial markets to adjust before any action is taken
E) trying to keep bank reserves stable