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The most common monetary policy tool in the United States is open market:
AObservations
BOperations
COrdinances
DObligations
Answer & Solution
Correct answer: B. Operations
1. The central bank trades Treasury bonds.
2. That changes the quantity of bank reserves.
3. The tool is open market operations.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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