Monetary policy is best described by which of the following statements?

A. Policies Congress puts into effect to manage the money supply.

B. Policies the President puts into effect to manage the money supply.

C. Actions that the Office of Management and Budget takes to monitor fiscal policies.

D. The collection of actions the Federal Reserve takes to manage the money supply.

Question

Social Studies

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7 October, 20:13

Monetary policy is best described by which of the following statements?

A. Policies Congress puts into effect to manage the money supply.

B. Policies the President puts into effect to manage the money supply.

C. Actions that the Office of Management and Budget takes to monitor fiscal policies.

D. The collection of actions the Federal Reserve takes to manage the money supply.

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Answers (2)

Know the Answer?

Dante Dudley · Answer 1

Monetary policy is best described by the collection of actions the Federal reserve takes to manage the money supply. The correct answer is D.

Ayana Miranda · Answer 2

I believe the answer is: D. The collection of actions the Federal Reserve takes to manage the money supply.

By managing money supply, the federal reserve could control the rate of inflation that experience by the country.

Example of monetary policy is by ordering banks to increase the interest rate given to people who are saving. By doing this, people would be more interested to put their money in the bank and reduce the money supply in the market.