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Policies connected to setting interest rates, control of currency supply, and the buying/selling of treasury bonds are referred collectively as Monetary policy
What is monetary policy?
Monetary policy is a set of tools used by a nation's central bank to control the overall money supply and promote economic growth and employ strategies such as changing interest rates and varying bank reserve requirements.
What is monetary policy sample?
- A central bank, such as the Federal Reserve in the U.S., will use expansionary monetary policy to support an economy.
- The three key actions by the Fed to boost the economy include a decreased discount rate, purchasing government securities, and a reduced reserve ratio.
To learn more about Monetary policy, refer
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