Question

Explain how the Federal Reserve Bank conduct the monetary policy? What are the Fed’s basic objectives? How the Fed’s monetary instruments employed in the policy process?
Compare between the Fed and your country Central Bank in terms of the objectives and monetary instruments.

Answer 1

Answer:

The goals of monetary policy are to promote maximum employment, stable prices and moderate long-term interest rates. By implementing effective monetary policy, the Fed can maintain stable prices, thereby supporting conditions for long-term economic growth and maximum employment

Explanation:

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