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CTP · Question #767

(Topic 8) The MOST important tool the Federal Reserve Board has for influencing the amount of reserves in the banking system is:

The correct answer is B. open market operations by the New York Federal Reserve. See the full explanation below for the reasoning.

Question

  • (Topic 8)

The MOST important tool the Federal Reserve Board has for influencing the amount of reserves in the banking system is:

Options

  • Ameetings of the Reserve Board of Governors.
  • Bopen market operations by the New York Federal Reserve.
  • Cterm limits for the Federal Reserve Governors.
  • Daccepting tax payments on behalf of the IRS.

How the community answered

(45 responses)
  • A
    9% (4)
  • B
    84% (38)
  • C
    2% (1)
  • D
    4% (2)

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