3. The Fed's toolbox Which of the following are the tools in the Fed's toolbox? Check all that apply. Exchange rate Interest on reserves rate Open-market operations Required reserve ratio (r) The Fed's primary tool for changing the money supply is the federal funds rate interest on reserves (IOR) rate, the reserve requirement, the discount rate, or the federal funds rate I chose these as my answers but I'm not quite sure if I'm correct. I also added the answer choices for the fill in the blanks at the bottom . This tool allows the Fed to indirectly open-market operations the reserve requirements, open- market operations, the discount rate, or interest on reserves (IOR) rate change Directly or indirectly
3. The Fed's toolbox Which of the following are the tools in the Fed's toolbox? Check all that apply. Exchange rate Interest on reserves rate Open-market operations Required reserve ratio (r) The Fed's primary tool for changing the money supply is the federal funds rate interest on reserves (IOR) rate, the reserve requirement, the discount rate, or the federal funds rate I chose these as my answers but I'm not quite sure if I'm correct. I also added the answer choices for the fill in the blanks at the bottom . This tool allows the Fed to indirectly open-market operations the reserve requirements, open- market operations, the discount rate, or interest on reserves (IOR) rate change Directly or indirectly
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The Fed's toolbox

Transcribed Image Text:3. The Fed's toolbox
Which of the following are the tools in the Fed's toolbox? Check all that apply.
Exchange rate
Interest on reserves rate
Open-market operations
Required reserve ratio (r)
The Fed's primary tool for changing the money supply is
the federal funds rate
interest on reserves (IOR) rate, the
reserve requirement, the discount rate, or
the federal funds rate
I chose these as my answers but
I'm not quite sure if I'm correct. I
also added the answer choices for
the fill in the blanks at the bottom
. This tool allows the Fed to indirectly
open-market operations
the reserve requirements, open-
market operations, the discount rate,
or interest on reserves (IOR) rate
change
Directly or indirectly
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