The two major policy instruments of the monetary policy are:

Question

bank loans to commercial banks and open market policy

the bank rate and the money supply

open market policy and accommodation policy

banks loans to commercial banks and the switching operations

Answer 1

The two major policy instruments of monetary policy are typically:

open market policy and the bank rate.

However, based on your provided options, none exactly fit this conventional classification. The closest match would align with the general tools used by central banks, which include:

• Open market operations (buying and selling government securities)
• The bank rate (the interest rate at which a central bank lends to commercial banks)

If you need to choose from the listed options, "the bank rate and the money supply" is the most relevant, as it relates to the tools central banks use to influence monetary conditions, even though the phrasing is somewhat unconventional. However, it’s worth noting that monetary policy generally aims to influence the money supply through various tools, including the interest rate and open market operations.