Part 2: Monetary Policy (Total Score: 40) 5. Define monetary policy and explain its importance in managing the economy. (5 points) 6. Discuss the tools that the Federal Reserve uses to implement monetary policy, including open market operations, discount rates, and reserve requirements. (15 points) 7. Analyze how the Federal Reserve might respond to different economic scenarios (e.g., recession, inflation, financial crisis) using its monetary policy tools. (10 points) 8. Research and provide a brief overview of a historical case study where the Federal Reserve implemented significant monetary policy measures. Discuss the context, actions taken, and outcomes. (10 points)