The set of actions taken by the central bank in order to affect the money supply is known as
A) banking functions.
B) procedures.
C) negotiated policies.
D) monetary policy.

Question

Quizplus · Accepted Answer

The set of actions taken by the central bank in order to affect the money supply is known as monetary policy. This includes decisions regarding interest rates, reserves requirements, and open market operations, among others. The goal of monetary policy is typically to achieve macroeconomic objectives such as price stability and full employment.

The Set of Actions Taken by the Central Bank in Order