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

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by central banks to regulate the money supply, credit availability, and interest rates in an economy. The Federal Reserve uses monetary policy to promote economic growth, stabilize prices, and prevent inflation. Fiscal policy, on the other hand, refers to government spending and taxation policies that impact the economy. Income policy and securities policy are not terms commonly used to describe the actions of the Federal Reserve.

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