Capital MarketsQuestion 330 of 398
Which of the following is a tool of the Federal Reserve's monetary policy?
a.Setting income tax rates
b.Approving federal government spending bills
c.Registering new securities offerings
d.Buying and selling government securities through open market operations
Explanation
Open market operations, the buying and selling of U.S. government securities, are the Fed's primary monetary policy tool for adjusting the money supply and influencing short-term rates. Setting tax rates and government spending are fiscal policy tools controlled by Congress and the President, not the Fed.
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