The provision of additional cash to the banking system is an example of _______ policy.

Question

Quizplus · Accepted Answer

The provision of additional cash to the banking system falls under the category of monetary policy, which involves actions taken by central banks to control the money supply and interest rates in the economy. The purpose of such actions is to achieve macroeconomic objectives such as low inflation, stable growth, and full employment. Fiscal policy, on the other hand, involves government spending and taxation policies that affect the overall level of economic activity. Structural policy refers to measures taken to improve the underlying structure of the economy, such as investments in infrastructure or education. Trade policy involves actions taken by governments to regulate international trade, while unemployment policy involves measures taken to address the problem of unemployment in the economy. None of these policies relate directly to the provision of additional cash to the banking system.

The Provision of Additional Cash to the Banking System Is