The Federal Reserve System exercises its most direct control of the money supply:
A. by the issuance of Federal Reserve notes
B. through reserve requirements
C. by setting the discount rates on loans to depository institutions
D. through open market operations
Answer:D
The Federal Reserve System exercises its most direct control of the money supply:
A. by the issuance of Federal Reserve notes B. through reserve requirements C. by setting the discount rates on loans to depository institutions D. through open market operations