Briefly Describe the Three Basic Tools of Monetary Policy

question 154

Essay

Briefly describe the three basic tools of monetary policy. How do they affect banks' reserves and the ability to make loans? Use the example of a contractionary policy.

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Definitions:

Practiced Creativity

The ability to seize opportunities to apply creative skills in the workplace.

Emotional Intelligence

The ability to recognize, understand, manage, and reason with emotions in oneself and others.

Self-Leadership

The process of influencing oneself to establish the self-direction and self-motivation needed to perform or achieve goals.

Supervisors

Individuals in a position of authority who oversee the performance and activities of employees or team members in an organization.