Question

What is the name of the Federal most often used monetary policy tool?

Answer 1

The Discount rate

Step-by-step explanation:

Open market operations are flexible, and thus, the most frequently used tool of monetary policy. The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans.

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Answer 2

Open market operations are flexible, and thus, the most frequently used tool of monetary policy. The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans.