The Fed also uses other tools to control the money supply.
1. Explain how the Fed uses the required reserve ratio to increase the money supply.
2. Define discount rate and federal funds rate.
3. Explain how the Fed uses the discount rate to increase the money supply.
4. Explain how the Fed uses open market operations to achieve its federal funds rate target.
5. List three steps the Fed took to deal with the 2007-2009 financial crisis.
6. Explain how the Temporary Auction Facility (TAF) works.