Question

List any four monetary policy instruments.

Answer 1

Answer:

The Fed can use four tools to achieve its monetary policy goals: the discount rate, reserve requirements, open market operations, and interest on reserves. All four affect the amount of funds in the banking system. The discount rate is the interest rate Reserve Banks charge commercial banks for short-term loans.

Answer 2

Answer:

Reserve requirements, Riscount rates, The Federal funds Rate, and Inflation targeting.