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Basic Question 10 of 13

To hit the federal funds rate target, the Fed uses open market operations to ______

A. change the quantity of reserves supplied.
B. change the quantity of reserves demanded.
C. set the federal funds rate directly.

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Colin Sampaleanu

Learning Outcome Statements

describe tools used to implement monetary policy tools and the monetary transmission mechanism, and explain the relationships between monetary policy and economic growth, inflation, interest, and exchange rates

CFA® 2024 Level I Curriculum, Volume 1, Module 4.