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Discuss the methods the Fed uses to enact monetary policy and provide an explanation of the...

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General Management

Discuss the methods the Fed uses to enact monetary policy andprovide an explanation of the effects these methods have on thesupply of money.

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There are mainly three methods which are available to FED in order to implement its monetary policy and these tools are given as below The discount rate Reserve requirements Open market operations Discount rates It can be seen as the interest rate at which FED provides the loans to the other banks for short term Thus the interest rate at which FED lends money to the other banks is called Discount rates Discount rate can be used by    See Answer
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