AP Macroeconomics Question 451: Answer and Explanation
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14. Monetary tools of the Federal Reserve do not include which of the following choices?
- A. Buying Treasury securities from commercial banks
- B. Changing tariffs and quotas on imported goods
- C. Changing the reserve ratio
- D. Changing the discount rate
- E. Selling Treasury securities to commercial banks
Correct Answer: B
B-The Fed does not make changes in tariff and quota policy.