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The most common monetary policy tool in the US is:

AOpen market operations
BReserve requirements
CThe discount rate
DDeposit insurance
Answer & Solution
Correct answer: A. Open market operations
1. The Fed buys or sells Treasury bonds. 2. Open market operations are most common. 3. They target the federal funds rate. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 14, Monetary Policy and Bank Regulation (CC BY 4.0)._
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