The Fed's tools of monetary control are

Question

a. government expenditures, taxation, reserve requirements, and interest rates.
b. coin, currency, demand deposits, and commodity money.
c. open-market operations, lending to banks, reserve requirements, and paying interest on reserves.
d. fiat, commodity, and deposit money.
e. the money supply, government purchases, and taxation.

Answer 1

The correct answer is:

c. open-market operations, lending to banks, reserve requirements, and paying interest on reserves.

These are the primary tools used by the Federal Reserve (the Fed) to control monetary policy and influence the economy.