Wendy01

Exercise Problems:
1. The monetary policy tools available to the Federal Reserve are least likely to include: A. Open market operations B. The ability to determine the required reserve ratios of its member banks C. Adjustments to the amount of gold held as reserves against Federal Reserve notes		Ans: C; monetary policy refers to central bank activities that are directed toward influencing the quantity of money and credit in an economy. The three prime tools available are open market operations, the refinancing rate, and reserve requirements. Adjustments to the amount of gold held as reserves against Federal Reserve notes will not change the quantity of money or credit in the economy, so it isn’t a kind of monetary policy.