- 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
The monetary policy tools available to the Federal Reserve are least likely to include ______.
A. open market operations
B. adjustments to the amount of gold held as reserves against Federal Reserve notes
C. the ability to determine the required reserve ratios of its member banks
Explanation: The Fed uses three main policy tools to achieve its objectives: required reserve ratios, discount rate, and open market operations. Making adjustments to gold reserves is not one of the Fed's policy tools.
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