The Principal Immediate Target of Policy for Most Central Banks

Multiple Choice

The principal immediate target of policy for most central banks consists of the volume of reserves available to the banking system. The total supply of reserves can be changed by:

A) Conducting open-market operations
B) Making loans to depository institutions through a credit or discount window
C) Changing the legal reserve requirements applicable to deposit
D) All of the above
E) Choices A and B only