The three main monetary policy instruments are
A) the money supply, the market interest rate, and deposit insurance.
B) open market operations, reserve requirement ratio, and the discount rate.
C) open market operations, deposit insurance, and the money supply.
D) open market operations, reserve requirement ratio, and the market interest rate.

Question

Quizplus · Accepted Answer

The three main monetary policy instruments are open market operations (buying and selling government securities), reserve requirement ratio (the percentage of deposits that banks must hold in reserve), and the discount rate (the interest rate at which banks can borrow from the central bank). The other options listed are not monetary policy instruments.

The Three Main Monetary Policy Instruments Are