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which is not policy tool used by the fed? ECONOMICS
a. setting the discount rate
b. buying and selling bonds
c. making tax cuts
d. setting the required reserve ratio

Respuesta :

Answer:

C. Making tax cuts :)

Explanation:

Making tax cuts is not a part of the policy tools made by the Federal Reserve.

What does Federal Reserve do?

The Federal Reserve acts as the central bank for the United States, and looks after the sovereign functions of a central bank. It maintains and updates the discount rate, rate of reserves.

One of the functions of the Federal Reserve is also to buy and sell bonds over which a fixed and predetermined rate of interest is paid.

Hence, option C holds true regarding the Federal Reserve.

Learn more about Federal Reserve here:

https://brainly.com/question/17097530

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