The monetary policy tools commonly used by the central bank are mainly divided into three types, namely, general monetary policy tools, selective monetary policy tools and supplementary monetary policy tools. Among them, the broad monetary policy tool is the most important monetary policy tool in China. Adjusting the money supply and credit scale from the total amount can have a general or even comprehensive impact on the changes of money and credit in the whole financial system. Selective monetary policy tool is a necessary supplement to conventional monetary policy, focusing on controlling the quality of banking activities, and it is a tool adopted by the central bank for some special credit or economic fields. Supplementary monetary policy tools are other policy tools besides general and selective tools, which can directly or indirectly control credit.

Three common monetary policy tools of the central bank;

Deposit reserve system: refers to the deposits prepared by financial institutions in the central bank to ensure customers' withdrawal of deposits or settlement of funds.

Rediscount policy: It means that commercial banks or other financial institutions transfer the discounted bills to the central bank.

Open market business: refers to the activities of the central bank to regulate the money supply by buying and selling securities and handling the base currency.