One of the​ fed's policy tools is​ ______.
a. the required reserve​ ratio, which equals 3 percent on checkable deposits and 10 percent on savings deposits
b. the discount​ rate, which is the interest rate at which the fed stands ready to lend reserves to commercial banks
c. the open market​ operations, which are purchase of government securities from the government
d. the monetary​ base, which is the sum of coins and federal reserve notes

Respuesta :

The Fed's policy tools focuses on required reserve ratio, the discount rate, and open market operations. The required reserve is set by the Fed to determine the required reserve ratio for each type of deposit made. The discount rate is set by the Fed by which interest rates are given out by commercial banks. The open market operation is the purchase or sale of government securities. 

Answer:

A) the required reserve​ ratio, which equals 3 percent on checkable deposits and 10 percent on savings deposits

Explanation:

The Fed has 4 tools to achieve its monetary policy goals:

  1. the discount rate: interest rate that the Fed charges commercial banks for short-term loans.
  2. reserve requirements: portions of clients' deposits that banks must hold in cash.
  3. open market operations: buying and selling of US government securities.
  4. interest on reserves: interest paid on excess reserves held at the Fed.