Efforts by the Federal Reserve Bank (the Fed) to control the money supply and interest rates are known as:
A) fiscal policy.
B) incomes policy
C) monetary policy
D) securities policy.

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by the Federal Reserve Bank to influence the availability and cost of money and credit in the economy. This is achieved primarily by adjusting the interest rates and the amount of money in circulation. Fiscal policy refers to the actions taken by the government to influence the economy through taxation and spending decisions. Incomes policy refers to the government's attempts to control inflation by limiting wage increases. Securities policy is not a commonly used term in economics. Therefore, the correct answer is C.

Efforts by the Federal Reserve Bank (The Fed) to Control