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Basic Question 0 of 13
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.
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Learning Outcome Statements
describe tools used to implement monetary policy tools and the monetary transmission mechanism, and explain the relationships between monetary policy and economic growth, inflation, interest, and exchange rates
CFA® 2025 Level I Curriculum, Volume 1, Module 4.