What is Monetary Policy ?!
Answers
Answer:
Monetary policy refers to the actions undertaken by a nation's central bank to control money supply and achieve sustainable economic growth. Monetary policy can be broadly classified as either expansionary or contractionary
Explanation:
Central banks use monetary policy to manage the supply of money in a country's economy. With monetary policy, a central bank increases or decreases the amount of currency and credit in circulation, in a continuing effort to keep inflation, growth and employment on track.
Some monetary policy examples include buying or selling government securities through open market operations, changing the discount rate offered to member banks or altering the reserve requirement of how much money banks must have on hand that's not already spoken for through loans.