The discount rate base rate is an interest rate charged by a central bank to banks for short-term loans. Here are the four primary tools and how they work together to sustain healthy economic growth. Monetary Policy Of A Country With Diagram The main instruments of the monetary policy are Cash Reserve Ratio Statutory Liquidity Ratio Bank Rate Repo Rate Reverse Repo Rate and Open Market Operations. . Quantitative Instruments or General Tools The Quantitative Instruments are also known as the General Tools of monetary policy. The various instruments of monetary policy include variations in bank rates other interest rates selective credit controls supply of currency variations in reserve requirements and open market operations. Tools of the monetary policy. Positive impact - It is a quick fix to control inflation. The monetary policy tools are divided into Quantitative tools and Qualitative tools which regulate the money supp