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 operation

Answer 1

The two major policy instruments of monetary policy are typically considered to be:

bank rate and the money supply.

These two instruments are used by central banks to influence the economy by adjusting interest rates and controlling the availability of money in the financial system.