Which of the following tools does the Federal Reserve System use to affect the money supply quizlet?

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What tools can the Fed use to affect the money supply?

The Fed has three major tools that it can use to affect the money supply. These tools are 1) changing reserve requirements; 2) changing the discount rate; and 3) open market operations.

What tools does the Federal Reserve use to reduce the supply of money quizlet?

What are the three things The Fed can do to reduce the money supply or reduce the rate of growth in the money supply: (1) sell bonds, (2) raise reserve requirements, or (3) raise the discount rate.

What are three main tools the Federal Reserve can use to control the money supply quizlet?

The Federal Reserve uses three tools of monetary policy (open market operations, discount lending, and reserve requirements) to control the money supply and interest rates.

What are the 3 tools the Federal Reserve uses?

The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy. The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements.