comment on this: While it is subjective to decide which duty is most important, many contend that monetary policy is essential because it has a direct impact on the state of the economy. Monetary policy that works can limit inflation or promote growth.Repurchase agreements (repos), commercial paper, and interbank lending are the three types of short-term funding sources. Banks lend to one another through interbank lending; repos are short-term secured loans; and corporations issue commercial paper, an unsecured debt instrument, to raise short-term funds