The government institution that has responsibility for the amount of money and credit supplied in the economy as a whole is the
A)central bank.
B)commercial bank.
C)bank of settlement.
D)monetary fund.

Question

Quizplus · Accepted Answer

The central bank, also known as the monetary authority, is responsible for regulating the money supply and credit conditions in the economy. This is typically done through various policy tools, such as setting interest rates, controlling the reserve requirements of commercial banks, and buying or selling government securities. The central bank plays a crucial role in maintaining economic stability and controlling inflation. Commercial banks are institutions that take deposits and make loans, but do not have the same level of authority or responsibility as the central bank. The bank of settlement and monetary fund are not specific government institutions and do not have the same level of authority over the entire economy as the central bank.

The Government Institution That Has Responsibility for the Amount of Money