________ policy concerns banks, credit, and currency.
A) Fiscal
B) Monetary
C) Welfare
D) Regulatory
E) Distributive

Question

Quizplus · Accepted Answer

Monetary policy is concerned with controlling the money supply and interest rates to achieve certain economic goals such as controlling inflation, promoting economic growth, and maintaining stability in the financial system. This involves actions such as adjusting interest rates, changing reserve requirements for banks, and buying or selling government securities. Fiscal policy, on the other hand, concerns government spending, taxation, and borrowing. Welfare policy is focused on helping those in need, while regulatory policy focuses on regulating industries and businesses. Distributive policy concerns how government resources are distributed among different groups and regions.

________ Policy Concerns Banks, Credit, and Currency