Which of the following is an example of monetary policy?

Question

Quizplus · Accepted Answer

Lowering interest rates is an example of monetary policy as it is a decision made by the central bank (in the US, the Federal Reserve) to influence the supply of money and credit in the economy. This is done by changing the cost of borrowing money, which can affect spending, investment, and inflation. The other options listed are examples of fiscal policy or regulatory policy, which are different ways that governments can influence the economy.

Which of the Following Is an Example of Monetary Policy