Question

Define monetary policy. What are its main methods?

Answer 1

Monetary policy is how central banks manage liquidity to create economic growth. Liquidity is how much there is in the money supply. That includes credit, cash, checks, and money market mutual funds. The most important of these is credit. It includes loans, bonds, and mortgages.

Answer 2

Monetary policy is the technique undertaken by the central bank of managing the money supply.

Explanation:

• The Monetary policy is categorised into two types which are general methods or selective methods. These methods are also called quantitative or qualitative methods.
• The general methods include Bank rate, Market operations, variable reserve ratio and the change in liquidity.
• The selective methods include changes in marginal requirements, consumer credit regulation, direct action, and credit rationing.
• The main methods of "monetary policy were" open market operations, discount rate, and reserve requirement.

Learn more about monetary policy

Explain monetary policy and its effect on business (500 words)

https://brainly.in/question/10685035

Difference between fiscal and monetary policy

https://brainly.in/question/9017191