The most widely used monetary policy tool is ________.

A) altering the discount rate
B) altering reserve requirements
C) open market operations
D) increasing the budget deficit

Monetary Policy

The process by which a central bank controls the supply of money in the economy, often targeting an inflation rate or interest rate to ensure economic stability.

Open Market Operations

The buying and selling of government securities by a central bank to control the money supply and influence interest rates in the economy.