Which of the Following Is False

Multiple Choice

Which of the following is false?

A) ​If the Fed wants to expand the money supply, it could lower the discount rate.
B) ​The discount rate is a relatively unimportant monetary policy tool, mainly because member banks do not rely heavily on the Fed for borrowed funds.
C) ​Changes in required reserve ratios are such a potent monetary policy tool that they are frequently used.
D) ​If the Federal Reserve wanted to induce monetary expansion, it could reduce reserve requirements, but it cannot force the banks to make loans, thereby creating new money.