Which of the Following Statement Is Most True Regarding Monetary

Which of the following statement is most true regarding monetary policy tools?

A) The required reserve rate is the most easily observable tool
B) The central banks cannot set a quantity and a price tool simultaneously
C) The federal funds rate is not the best tool because it fails the controllable test of a good monetary policy tool
D) The Fed currently uses a quantity tool for monetary policy

Correct Answer:

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