What is meant by "Monetary Policy"?
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Definition: Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
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Monetary policy is an economic policy that manages the size and growth rate of the money supply in an economy.It is a powerful tool to regulate macroeconomic variables such as inflation and unemployment.
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