The monetary policy tool in use daily is_______.
Social Studies · High School · Sun Jan 24 2021
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The monetary policy tool that is in use on a daily basis is called "open market operations" (OMO). Central banks, like the Federal Reserve in the United States, use open market operations to buy and sell government securities on the open market to regulate the supply of money in the economy. By influencing the supply of money, central banks can target short-term interest rates and achieve their monetary policy goals, which typically include controlling inflation, managing employment levels, and fostering economic growth.