- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 2. Monetary Policy Tools and Monetary Transmission
CFA Practice Question
To hit the federal funds rate target, the Fed uses open market operations to ______
B. change the quantity of reserves demanded.
C. set the federal funds rate directly.
A. change the quantity of reserves supplied.
B. change the quantity of reserves demanded.
C. set the federal funds rate directly.
Correct Answer: A
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