What is the primary tool that monetary policy uses to affect the overall economy?

Question

Quizplus · Accepted Answer

The primary tool that monetary policy uses to affect the overall economy is the money supply. This can be done through actions such as adjusting interest rates, buying or selling government bonds, and changing reserve requirements for banks. By influencing the supply of money and credit in the economy, monetary policy can affect borrowing, spending, and investment, which in turn can have an impact on inflation, employment, and overall economic growth.

What Is the Primary Tool That Monetary Policy Uses to Affect