Discount Window Lending: Providing short-term loans to banks to ensure they have sufficient reserves, directly impacting the liquidity available in the market.
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2. Regulating Money Supply:
 Reserve Requirements: Setting the reserve ratio, which dictates how much banks need to hold in reserve versus how much they can lend out, impacting the money supply.
 Quantitative Easing (QE): Large-scale purchase of government and other securities to inject liquidity into the economy and lower long-term interest rates.
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3. Bank Supervision and Financial Stability:
 Monitoring and regulating banks to ensure they operate safely and soundly.
 Acting as a lender of last resort during times of financial distress to stabilize the banking system.
*Financial intermediaries in money market:
1. Commercial Banks: Accept deposits, provide loans, and offer checking and savings accounts to individuals and businesses.
