The Federal Reserve uses three tools to set monetary policy through the banks. Identify these three tools and provide an example of how each tool affects individual consumers.

Question

anonymous · Answer

I know its a discount rate, reserve requirement, and open market operations, but what are some examples?

anonymous · Answer

I know its economics but I am unable to open the page for that subject
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bohotness · Answer

?

bohotness · Answer

https://search.yahoo.com/yhs/search?p=The+Federal+Reserve+uses+three+tools+to+set+monetary+policy+through+the+banks.+Identify+these+three+tools+and+provide+an+example+of+how+each+tool+affe&ei=UTF-8&hspart=mozilla&hsimp=yhs-005

irishboy123 · Answer

discount rate == rate setting  #1 tool most of time
open market ops == quantitative easing, ie artificial market in securities: printing money
3rd one confused me, and still does:  reserve requirement, maybe it changes regularly but i doubt that.