The type of policy that involves interest rates and the availability of loanable funds is known as:
A)fiscal policy.
B)monetary policy.
C)strategic financial policy.
D)federal policy.

Question

Quizplus · Accepted Answer

The type of policy that involves interest rates and the availability of loanable funds is known as monetary policy. Monetary policy is the process by which a government, central bank, or monetary authority manages the supply and availability of money in the economy, and thus influences interest rates. Fiscal policy, on the other hand, involves government spending and taxation. Strategic financial policy is a term that is not commonly used, and federal policy is a broader term that encompasses both monetary and fiscal policy, as well as other policies implemented by the federal government.

The Type of Policy That Involves Interest Rates and the Availability