Question

The Fed's control over interest rates, quantitative easing, and direct lending to financial institutions are some of the tools of ______

Answer 1

Answer:

Monetary Policy

Explanation:

The Fed is the shortened term for the Federal Reserve or the United State's Central Bank and Tools of Monetary Policy are communications, actions and tools employed by the Fed to regulate the activities of the economy by regulating the activities of the its member financial institutions.

Specifically, the Federal Reserve has three economic goals as directed by the Congress and they include, moderate long-term interest rates, stable prices and maximum employment. By controling interest rates, making direct lending or buying the treasury bill sof financial institutions among others, the Fed carries out these three economic goals.