3 The Federal Reserve is also currently refining plans for a term deposit facility that could convert a portion of depository institutions’ holdings of reserve balances into deposits that are less liquid and could not be used to meet reserve requirements.
4 In addition, the FOMC has the option of  2  For further details on these tools and the Federal Reserve’s exit strategy, see Ben S. Bernanke (2010), "Federal Reserve’s Exit Strategy”, statement before the Committee on Financial Services, U.S. House of Representatives, February 10.