In June 2010, John pays $9,800 for a one- year T-bill that can be redeemed for $10,000. What is the amount of interest earned? What is the yield? Discuss the major policy tools that the Fed can use to...

In June 2010, John pays $9,800 for a one- year T-bill that can be redeemed for $10,000. What is the amount of interest earned? What is the yield?

Discuss the major policy tools that the Fed can use to promote the overall health of the economy. What is the most widely used tool?