Please look below and that's the question. Is a macroeconomics question Please elaborate your answer!?

Question

Write the answer in detail as much as you know about the subject!

Besides open-market operations, what other means does the Federal Reserve have for controlling the money supply? Explain how these alternative methods work.

Answer 1

I just took this class, i think i remember...

First off, the Fed can change the discount rate which is what banks use to loan each other money. By changing this, the cost of consumers loaning from banks is either increased or decreased (respective to the rate change) which will no doubt affect the money supply.

Also, at least in the US, banks must only hold a percentage of what they loan out. If the fed decides to raise the minimum reserve requirement banks cannot loan out as much money decreasing the money supply and by lowering it the opposite occurs. This is also known as the money multiplier.

This is all i can remember as of now, these three months of summer have fried my brain.