Answer :

GinnyAnswer

Final answer:

The Federal Reserve uses open-market operations, discount window lending, and reserve requirements as tools for monetary policy.


Explanation:

Monetary policy refers to the actions of the Federal Reserve to influence money and credit availability. The three tools the Federal Reserve uses for monetary policy are:

  1. Open-market operations: Buying and selling government securities to control the money supply.
  2. Discount window lending: Providing short-term loans to banks to regulate liquidity.
  3. Reserve requirements: Mandating the minimum reserves banks must hold.

Learn more about Federal Reserve tools for monetary policy here:

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