Question

The three tools the Federal Reserve uses to enact monetary policy are:

A.) Determine whom banks loan money to
B.)setting the reserve rare
C.)setting the interest rate changed to commercial banks on loans from federal reserve
D.)The buying and selling of treasury bonds and other goverment-backed securities

Answer 1

Option:

B , C and D are the correct options.

Explanation:

The goals of monetary policy are:

To promote maximum employment, stable price and moderate long term interest rate.

The three tools the Federal Reserve uses to enact monetary policy are:

B.)setting the reserve rate.

C.)setting the interest rate changed to commercial banks on loans from federal reserve.

D.)The buying and selling of treasury bonds and other government-backed securities.