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Question
Which of the following controls regulates the economy?
Which of the following controls regulates the economy?
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Solution
The correct option is C Monetary Policy
Monetary policy consists of the actions of a central bank that determine the size and rate of
growth of the money supply, which in turn affects interest rates.
Monetary policy is maintained through actions such as modifying the
interest rate, buying or selling government bonds, and changing the
amount of money banks are required to keep in the vault (bank reserves).
Monetary policy consists of the actions of a central bank that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).
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