AFP
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)- A9% (4)
- B84% (38)
- C2% (1)
- D4% (2)
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