- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 12. Monetary and Fiscal Policy
- Subject 4. The Objectives of Monetary Policy
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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