Monetary policy is defined as: A. The actions the Federal Reserve takes to manage tax policy and interest rates. B. The actions Congress takes to manage tax policy and interest rates. C. The actions Congress takes to manage the money supply and interest rates. D. The actions the Federal Reserve takes to manage the money supply and interest rates.

Question

Stein

Business

17 July, 03:32

Monetary policy is defined as: A. The actions the Federal Reserve takes to manage tax policy and interest rates. B. The actions Congress takes to manage tax policy and interest rates. C. The actions Congress takes to manage the money supply and interest rates. D. The actions the Federal Reserve takes to manage the money supply and interest rates.

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Broderick Ross · Answer 1

D) The actions the Federal Reserve takes to manage the money supply and interest rates.

Explanation:

The Federal Reserve System (FED) is an autonomous government entity of the United States of America that functions like a central bank. Its main responsibilities are to manage the nation's money supply (the total amount of money in the economy) and establish federal interest rates (interest yielded by T-bills, T-notes and T-bonds).