“Monetary policy and its tools” Presentation of term paper

Contents

1. Definition of a monetary policy
2. Open market operations
3. Required reserve

The strongest tool of economic policy
Provided by central bank or

Tools of the monetary policy

Open market operations
Required reserve ratio

Open market operations

Open market operations are the most
flexible and frequently

Required reserve ratio

Federal funds rate

Conclusion

Monetary policy becomes the most important mean of economy policy