Asked by Jazmin Blanco Ferrufino on Jun 11, 2024

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Monetary policy is

A) minting coins and printing Federal Reserve notes.
B) manipulating interest rates,credit conditions,and the money supply.
C) manipulating government expenditures and tax revenues.
D) regulating the United States dollar price of golD.

Monetary Policy

The process by which a central bank or monetary authority manages the money supply and interest rates to achieve economic objectives.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that borrowers pay to lenders over a specified period.

Money Supply

The sum of all financial resources in the form of cash and deposits in banks present within an economy at a given moment.

  • Understand the role of monetary policy in influencing economic conditions.
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Prishen Pillay SamooJun 15, 2024
Final Answer :
B
Explanation :
Monetary policy refers to the actions taken by a central bank, such as the Federal Reserve in the United States, to control and manipulate the economy through interest rates, credit conditions, and the money supply. Minting coins and printing notes is a part of monetary policy but only a small aspect of it. Manipulating government expenditures and tax revenues is considered fiscal policy, not monetary policy. Regulating the United States dollar price of gold is not a part of monetary policy since the U.S. dollar is no longer backed by gold.