The monetary policy tools used by the Federal Reserve to adjust the money supply are reserve requirements, the discount rate, and open-market operations.

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Reserve requirements refer to the percentage of deposits that banks are required to hold in reserve, while the discount rate is the interest rate at which banks can borrow from the central bank. Open-market operations involve the buying and selling of government securities in the open market to influence the money supply. These three tools are commonly used by the Federal Reserve to adjust the money supply.

The Monetary Policy Tools Used by the Federal Reserve to Adjust