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:
- Open-market operations: Buying and selling government securities to control the money supply.
- Discount window lending: Providing short-term loans to banks to regulate liquidity.
- Reserve requirements: Mandating the minimum reserves banks must hold.
Learn more about Federal Reserve tools for monetary policy here:
https://brainly.com/question/36137784
