Changes in the money supply and interest rates that are the result of actions taken by a country's central bank are referred to as:
A) deposit creation and destruction actions.
B) financial controls.
C) monetary policy.
D) financial policy.

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions undertaken by a country's central bank, such as the Federal Reserve in the United States, to control the money supply and interest rates. These actions are aimed at achieving macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.

Changes in the Money Supply and Interest Rates That Are