The Four Main Policy Tools the Federal Reserve System Uses

Multiple Choice

The four main policy tools the Federal Reserve System uses to influence the interest rate are setting

A) the prime rate,open market operations,extraordinary crisis management and setting the excess reserve ratio.
B) quantitative easing,market interest rate and the discount rate,as well as open market operations.
C) the discount rate,open market operations,extraordinary crisis measures and setting the required reserve ratio.
D) credit easing,the discount rate,setting tax rates,and setting the required reserve ratio.
E) quantitative easing,open market operations,setting tax rates,and setting the required reserve ratio.