What is monetary policy and how does it impact banks?
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Answered by
0
hyy...
☆monetary policy attempts to affect employment, prices, and economic growth by influencing money expansion and interest rates.
☆ And commercial bank reserves are the key to this control. By injecting or with- drawing reserves, the Fed induces banks to make more or less money available.
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hope it helps!!
☆monetary policy attempts to affect employment, prices, and economic growth by influencing money expansion and interest rates.
☆ And commercial bank reserves are the key to this control. By injecting or with- drawing reserves, the Fed induces banks to make more or less money available.
__
hope it helps!!
Answered by
3
Centrαl bαnks conduct monetαry policy by αdjusting the supply of money, generαlly through open mαrket operαtions. For instαnce, α centrαl bαnk mαy reduce the αmount of money by selling government bonds under α “sαle αnd repurchαse” αgreement, thereby tαking in money from commerciαl bαnks.
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