The Federal Reserve Bank's exercising control over the quantity of money and interest rates is called

Question

Quizplus · Accepted Answer

The Federal Reserve Bank exercises control over the quantity of money and interest rates through monetary policy, which involves the manipulation of money supply and interest rates to influence economic activity. Fiscal policy involves government spending and taxation, not under the control of the Federal Reserve Bank. Commercial banking refers to the activities of commercial banks, not the Federal Reserve Bank. Functional finance is a macroeconomic theory that emphasizes the role of government in maintaining full employment and price stability through fiscal policy. Incomes policy involves the government's attempt to control inflation by influencing wage and price changes, not under the control of the Federal Reserve Bank.

The Federal Reserve Bank's Exercising Control Over the Quantity of Money