0
Monetary policy rests on the relationship between the rates of interest in an economy, that is, the price at which money can be borrowed from, and the total availability of money. Monetary policy make use of a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authorities has the ability to change the money supply and thus influence the interest rates for the sake policy goals.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What institution is in charged with managing the nation27s monetary policy by setting interest rates?
the federal reserve
The interest rate policy is the component of?
monetary policy.........
What is the difference between Tight monetary policy from easy monetary policy?
pic
Who framed monetary policy?
reserve bank of India frames monetary policy
When was Monetary Policy Committee created?
Monetary Policy Committee was created in 1997.
Statement of problem of monetary policy in Nigeria?
the problems of monetary policy in Nigera
The three tools the Federal Reserve uses to enact monetary policy are?
the three tools the Federal Reserve uses to enact monetary policy are setting the interest rate charged to commercial banks on loans from the Federal Reserve. Setting the reserve rate. The buying and selling of Treasury bonds and other government-backed securities
Who frames Indian monetary policy?
reserve bank of india frames monetary policy
What is the tight monetary policy?
Tight monetary policy is the money policy with high interest rates and low supply.
When the governments raise or lowers taxes it is one form of?
monetary policy ITS ACTUALLY FISCAL POLICY . CLOWN -_-
What does loosening monetary policy means?
Loose monetary policy is the money policy that has low interest rates and a high supply.
What is the purpose of the monetary policy?
The purpose of the International monetary policy is tho survey the global economy.
