The three main monetary policy instruments are

Question

Quizplus · Accepted Answer

The three main monetary policy instruments are open market operations, reserve requirement ratio, and the discount rate. Open market operations involve central bank purchases or sales of government securities to influence the money supply and interest rates. The reserve requirement ratio is the percentage of deposits that banks must hold in reserve, which affects the amount of money banks can lend out. Lastly, the discount rate is the interest rate at which banks can borrow from the central bank, which affects the cost of borrowing and lending in the economy.

The Three Main Monetary Policy Instruments Are