The most important tool of monetary policy is the discount rate.

Name: The most important tool of monetary policy is the discount rate.
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Question

Quizplus · Accepted Answer

While the discount rate is an important tool of monetary policy, it is not the most important. The most important tool is arguably the setting of interest rates, which can influence borrowing and spending in the economy. Other tools such as reserve requirements and open market operations are also used in the implementation of monetary policy.

The Most Important Tool of Monetary Policy Is the Discount