content area top Part 1 Explain the Fed's policy tools and briefly describe how each works. Question content area bottom Part 1 The Fed uses its policy tools to _______. A. influence the exchange rate and the country's trade balance by adjusting the interest rate B. keep the government budget debt under $20 trillion by adjusting loans to Congress C. regulate the amount of money circulating in the United States by printing enough money each year for the purchase of consumer goods and services D. influence the interest rate and regulate the amount of money circulating in the United States by adjusting the reserves of the banking system