If a important ridge wishes to amend the money supply, what three tools can it use?



Answers:    (1) It can change the Required Reserve Ratio (RRR) of bank.

(2) It can change the Discount Rate.

(3) It can buy or vend bonds from and to banks.

For details, click the intertwine, below, to see a very clear composition, "Tools of Monetary Policy."

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