When the FED offers banks payment in exchange for leaving money at the FED instead of
lending it, they are manipulating which tool of monetary policy?

Answer: The Federal Reserve, America's central bank, is responsible for ... When the economy is faltering, the Fed can use these tools to enact expansionary monetary policy. ... supply by removing cash from the economy in exchange for bonds. ... the bank is left with less money to lend out on each dollar deposited.

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When the FED offers banks payment in exchange for leaving money at the FED instead of lending it, they are manipulating which tool of monetary policy?

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When the FED offers banks payment in exchange for leaving money at the FED instead of
lending it, they are manipulating which tool of monetary policy?