3 tools that the Federal Reserve uses to pursue monetary policy are open-market operations, assignment help

The 3 tools that the Federal Reserve uses to pursue monetary policyare open-market operations, the discount rate, and the required reserveratio (McEachern, 2015). Open-marketoperations are the purchase and sale of U.S. government bonds toincrease the money supply. The discount rate is the interest rate thatthe Fed charged for bank loans. The required reserve ratio is theminimum amount of reserves that a bank must hold on deposits.The tool that is used most often is open-market operations due to its simplicity, flexibility, and ease of use.2-3 sentences