The deposit reserve policy refers to a monetary policy tool that the central bank affects the credit scale of commercial banks by adjusting the statutory deposit reserve ratio, thus affecting the money supply.

This is a powerful and difficult monetary policy tool. As far as its effect is concerned, it can often reach the predetermined intermediate goal or even the expected final goal quickly, but it will have a strong impact on actual economic activities and often cause serious economic turmoil. If it is adjusted frequently, it will also make it difficult for commercial banks to carry out proper liquidity management, so its application will often have great side effects. Therefore, it is not suitable for fine-tuning and cannot be used often.

(2) rediscount policy

Rediscount policy refers to a monetary policy tool that the central bank influences the credit scale and market interest rate of commercial banks by raising or lowering the rediscount rate, thus affecting the money supply.

Rediscount policy can not only adjust the money supply, but also play a certain role in the adjustment of the credit structure, which can reflect the policy intention of the central bank to a certain extent and produce a "notice effect". In addition, the central bank can use it to perform the function of lender of last resort, prevent financial panic and contribute to the relative stability of a country's economy. But the central bank is in a passive position when using this tool, and whether this decision can achieve the expected effect will depend on the reaction of commercial banks or other financial institutions to this decision; Moreover, the adjustment of rediscount interest rate sometimes fails to accurately reflect the policy intention of the central bank, which may cause public misunderstanding; The central bank plays the role of lender of last resort through rediscount policy, which has the problem of moral hazard.

(3) Open market business

Open market business refers to the behavior of the central bank to openly buy and sell securities (especially government bonds) in the financial market in order to put in or withdraw the base currency, control the money supply and affect the market interest rate.

Compared with other monetary policy tools, the advantages of open market business are: the initiative is entirely in the central bank, and its operation scale is completely controlled by the central bank itself; It can be carried out flexibly and exquisitely, and can be adjusted at any scale in a timely and appropriate manner; Has strong reversibility; The operation is fast and there will be no delay. Of course, as a tool of monetary policy, open market business also has its shortcomings, mainly due to its weak influence on public expectations and the mandatory influence of commercial banks.