Asked by Maryam Almamlouk on Jun 07, 2024
Verified
Monetary policy consists of
A) actions taken by both the legislative and executive branches of government to control the nation's money supply.
B) actions taken by Congress to control the nation's money supply.
C) actions taken by the Federal Reserve System to control the nation's money supply.
D) actions taken by the executive branch of government to control the nation's money supply.
Monetary Policy
Economic policy laid down by the central bank involving management of money supply and interest rates to influence economic growth and stability.
Federal Reserve System
Central bank of the United States, whose main job is to control our rate of monetary growth.
Money Supply
The total amount of monetary assets available in an economy at any specific time.
- Acquire knowledge on the obligations and positions of the Federal Reserve System in the United States.
- Acquire knowledge on how policies from the Federal Reserve influence the economy, focusing on aspects such as inflation, interest rates, and the supply of money.
Verified Answer
BS
Becca SlickJun 11, 2024
Final Answer :
C
Explanation :
Monetary policy refers to the actions taken by the central bank, which in the case of the United States is the Federal Reserve System, to control the nation's money supply. This includes setting interest rates, buying or selling government securities, and adjusting the reserve requirements for banks. The legislative and executive branches of government may have some influence on monetary policy through their appointments to the Federal Reserve Board, but they do not directly control it.
Learning Objectives
- Acquire knowledge on the obligations and positions of the Federal Reserve System in the United States.
- Acquire knowledge on how policies from the Federal Reserve influence the economy, focusing on aspects such as inflation, interest rates, and the supply of money.