The most significant tools available to the Fed through which the country's money supply is managed are

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Open-market operations and the discount rate are two of the most significant tools the Federal Reserve uses to manage the country's money supply. Open-market operations involve the buying and selling of government securities to influence the level of reserves in the banking system, thereby affecting interest rates and the amount of money in circulation. The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility, which also influences the money supply.

The Most Significant Tools Available to the Fed Through Which