The tool the Fed uses most often to implement monetary policy is

A) control of the discount rate.
B) moral suasion.
C) control of required reserves.
D) control of member banks' credit standings.
E) open market operations.

Open Market Operations

Central bank activities involving the buying and selling of government securities in the open market to control the money supply and influence interest rates.

Monetary Policy

Actions undertaken by a central bank, such as setting interest rates or buying securities, to influence the money supply and achieve economic goals.

Discount Rate

The rate at which the Federal Reserve lends money to financial institutions through its discount window.