Monetary policy is determined by
A)the Federal Government.
B)the Federal Reserve.
C)the business cycle.
D)depository institutions.

Question

Quizplus · Accepted Answer

Monetary policy is the responsibility of the Federal Reserve, which operates independently of the federal government. The Federal Reserve manages the money supply through various tools, such as setting interest rates, buying or selling government securities, and adjusting reserve requirements for banks. The purpose of monetary policy is to achieve price stability, full employment, and economic growth.

Monetary Policy Is Determined by