Question 41 Problem 1 d: Which of the following statements about the Monetary Policy Tools is correct? Open Market Operations are considered to be the most powerful monetary tool while the Discount Rate Rate is the most frequently used and most important tool. The Discount Rate is considered to be the most powerful monetary tool while the Required Reserve Ratio the most frequently used and most important tool. The Required Reserve Ratio is considered to be the most powerful monetary tool while the Discount Rate Rate is the most frequently used and most important tool.

The Board of Governors of the Federal Reserve is in charge of setting and overseeing monetary policy and is headed by the ___________(PRESIDENT OF THE BANK OF NEW YORK / CHAIRMAN OF THE FEDERAL RESERVE / SPEAKER OF THE HOUSE / PRESIDENT OF FEDERAL OP[EN MARKET COMMITTEE).    . Monetary policy is supposed to be____________(COORDINATED WITH/ INDEPENDENT OF)    Congress and the president. This goal is hindered by the fact that the chairman is_______________(APPOINTED BY THE PRESIDENT / PUBLICLY ELECTED).   Because Congress initially intended to create a decentralized banking system, there are also smaller branches of the Federal Reserve known as district banks. All presidents of the district banks take turns serving as members of the Federal Open Market Committee (FOMC) except for the president of the Federal Reserve Bank of __________(SAN FRANCISCO, NEW YORK, WASHINGTON DC), who is a permanent member.   NOTE- This is one question but divided into the parts please answer with an…

Federal Reserve is the central bank of the United States. She conducts monetary policy with various tools.a. Many central banks share similar policy objectives. What are the objectives of the Federal Reserve? b. Suppose the Federal Reserve announces a “loose” monetary policy.What has to be done, traditionally, with an open market operation? Explain with reference to the money creation process

Monetary Policy is one the important drivers in growth & development of an economy. Illustrate at least four instruments/tools which are used universally in implementation of monetary policy.