Monetary policy refers to the implementation of actions by the central bank or other regulatory authority to control and regulate the money supply of a nation. Its main goal is usually to stabilize prices and promote economic growth. As such, it involves determining the level of interest rates, adjusting reserve requirements for banks and implementing other measures to increase or decrease the supply of money in the economy.

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Monetary Policy

Question 105

Multiple Choice

Monetary policy

A) refers to decisions that determine the government's budget.
B) is controlled by a government institution called the Privy Council.
C) is aimed at changing the underlying structure,or institutions,of the nation's economy.
D) refers to the determination of the nation's money supply.
E) can result in a budget deficit or budget surplus.

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