Monetary authorities use several tools to influence money supply and credit conditions. Interest rate adjustments are one of the most common tools, affecting borrowing and spending behavior. Open market operations involve buying or selling government securities to regulate liquidity in the financial system. Reserve requirements determine how much funds banks must hold, directly influencing their lending capacity. Some authorities also use policy communication to guide expectations. Together, these tools help steer economic activity in line with policy objectives while responding to changing economic conditions.