What is the primary means by which the FRB attempts to influence the money supply?

The primary means by which the Federal Reserve Board (FRB) influences the money supply is through monetary policy. Monetary policy involves the management of the money supply and interest rates, primarily aimed at achieving macroeconomic objectives such as controlling inflation, maximizing employment, and stabilizing currency.

The FRB implements monetary policy through various tools, including open market operations (buying and selling government securities), adjustments to the discount rate (the interest rate charged to commercial banks), and changes in reserve requirements (the amount of funds banks must hold in reserve against deposits). By adjusting these levers, the FRB can either increase or decrease the amount of money circulating in the economy, which in turn affects economic activity, inflation rates, and overall growth.

Each of the other options pertains to different areas of economic influence. Fiscal policy refers to government expenditure and taxation decisions made by Congress and the President. Regulatory policy involves creating and enforcing regulations to protect consumers and ensure fair practices in the market. Trade policy encompasses tariffs, trade agreements, and regulations that govern international trade. While these factors are crucial for the economy, they are not the primary tools used by the FRB to influence the money supply.