Which of the following methods of carrying out monetary policy is considered by the Fed to be its most powerful and precise tool? Select one: A. Setting legal reserve requirement B. Establishing the discount rate of borrowing C. Open market operations D. None of the above The Fed currently uses _____ as its operating target and_____ as its intermediate target. Select one: A. GDP; inflation rate B. discount rate; money supply C. Fed funds rate; interest rates D. inflation rate; money supply Long-time political and economic observers are generally of the opinion that the debate over the independence of the Fed is more form than substance. According to this view, Congress finds it __________ to use the Fed as a scapegoat for what ails the economy. Select one: A. constitutional B. unnecessary C. convenient D. democratic