Sign In
Ask Question
Dashawn Vance
Business
28 November, 23:36
What does monatary policy do
+3
Answers (
2
)
Micah
28 November, 23:48
0
The monetary policy regulates cash supply, controls inflation, adjusts interest rates to regulate the market, and money costs
Explanation:
Monetary policies raise flexibility in order to produce economic development. This reduces money to prevent inflation.
Three objectives of monetary policy:
Inflation is the most important thing. The second aim is to reduce unemployment, but only after inflation has been controlled. Thirdly, low long-term interests rates should be encouraged.
The four tools to fulfil monetary policy goals:
Risk-Free rate: Federal Reserve discount funding complements monetary policy to the federal fund's goal, which provides commercial banks with backup liquidity.
Capital requirements: The amounts of funds that lenders have to hold in cash or on loan in their containers at reserve banks.
Market Activities: U. S. government bond purchase and selling has been a trustworthy device.
Reserve interest: Excess funds kept at Reserve Banks were charged for interest on deposits.
Comment
Complaint
Link
Adrienne
28 November, 23:54
0
Monetary policy consists of management of money supply and interest rates, aimed at achieving macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Comment
Complaint
Link
Know the Answer?
Answer
Not Sure About the Answer?
Find an answer to your question 👍
“What does monatary policy do ...”
in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
How are investments different from savings accounts?
Answers (1)
Americans have come a long way in reducing their overt prejudice among groups such as Hispanics, whites, blacks, Jews, and Asians. However, two hurdles still exist.
Answers (1)
Why are intermediate goods not included in GDP? a. to avoid counting them twice in GDPb. to make sure only nondurable goods are included in GDPc. to keep goods that are not bought and sold out of the GDPd.
Answers (1)
Which has the rate of on-the-job injuries in increasing order?
Answers (1)
A bond is being sold that will pay the owner of the bond $10,000 in one year. The price of the bond is 9,500 and the Federal Reserve would like to reduce the interest rate. The Federal Reserve should ...
Answers (1)
New Questions in Business
1. During a traffic stop if a front-seat passenger 18 years of age or younger is not wearing a safety belt, who is charged with the violation?
Answers (1)
Как защитить себя от воздействующих факторов взрыва, если вы находитесь в зоне действия продуктов взрыва?
Answers (1)
What is 44756 : 167 long divison
Answers (1)
You are given a choice of taking the simple interest on $100 comma 000 invested for 3 years at a rate of 5 % or the interest on $100 comma 000 invested for 3 years at an interest rate of 5 % compounded quarterly.
Answers (1)
The area in which the law of demand best applies is 1) macroeconomics. 2) social policy. 3) microeconomics. 4) political science.
Answers (1)
Home
»
Business
» What does monatary policy do
Sign In
Sign Up
Forgot Password?