Question

The three primary policy tools available to those officials in charge of our country's monetary policy are a reserve requirements, the discount rate, and open-market operations. b reserve requirements, the ability to tax banks, and the discount rate. c the ability to tax banks, the discount rate, and open-market operations. d consumer protection laws, the ability to tax banks, and the ability to reduce the individual income tax rate.

Answer 1

Answer:

a. reserve requirements, the discount rate, and open-market operations.

Explanation:

The three primary policy tools available to those officials in charge of our country's monetary policy are reserve requirements, the discount rate, and open-market operations.

Answer 2

Answer:

a. reserve requirements, the discount rate, and open-market operations.

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.

Additionally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).

The three (3) primary policy tools available to the governmental officials in charge of our country's monetary policy are reserve requirements, the discount rate, and open-market operations.