Regulatory policy used to affect credit markets is known as ________.

Question

Quizplus · Accepted Answer

Macroprudential regulation refers to regulatory policy used to affect credit markets by promoting the stability and soundness of the financial system. It includes measures such as capital and liquidity requirements, stress testing, and limits on credit growth to prevent systemic risks. Fiscal restraint and Bierstadt relaxation are not related to credit markets, while monetary policy is separate from regulatory policy and is used to influence the economy through changes in interest rates and money supply.

Regulatory Policy Used to Affect Credit Markets Is Known as ________