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Describe the four major tools central banks use to enact monetary policy: reserve requirements, discount rates, open market operations, and interest on reserves. (4 points)

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Answer:

Central banks have four primary monetary tools for managing the money supply. These are the reserve requirement, open market operations, the discount rate, and interest on excess reserves.

Explanation  :Central banks have four primary monetary tools for managing the money supply. These are the reserve requirement, open market operations, the discount rate, and interest on excess reserves.

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