Question

What type of monetary policy was last implemented and when? What tool was used to implement such policy?

Answer 1

Ans :- The fed conducts monetory policy by setting an objective for the federal funds rate,the rate at which banks obtain and loan holds on a short-term basis.it meets its objective through open market operations,financial exchanges traditionaly including u.s tresaury securities.

The federal save's three instruments of monetory policy are open market operations,the rebate rate and save necessities.

The fed has utilized the Expansionary monetary policy as of late a year ago. This policy was executed in the last time was on March 2020. The objective federal funds rate (primary monetary policy instrument for the Fed) was sliced from 1-1.25 to 0-0.25. This is coming in the midst of the COVID-19 pandemic which is introducing the most extreme financial test for economies worldwide over the most recent couple of decades.