ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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benefits that employees get as well as their salaries
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actions by the federal reserve to expand or contract money supply
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system of supply and demand that determines the value of things
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actions by the federal government for spending and budgeting
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Detailed explanation-1: -Monetary policy is a set of actions to control a nation’s overall money supply and achieve economic growth. Monetary policy strategies include revising interest rates and changing bank reserve requirements. Monetary policy is commonly classified as either expansionary or contractionary.
Detailed explanation-2: -Conducting monetary policy If the Fed, for example, buys or borrows Treasury bills from commercial banks, the central bank will add cash to the accounts, called reserves, that banks are required keep with it. That expands the money supply.
Detailed explanation-3: -Monetary policy in the United States comprises the Federal Reserve’s actions and communications to promote maximum employment, stable prices, and moderate long-term interest rates–the economic goals the Congress has instructed the Federal Reserve to pursue.
Detailed explanation-4: -Monetary policy concerns the decisions taken by central banks to influence the cost and availability of money in an economy. In the euro area, the European Central Bank’s most important decision in this respect normally relates to the key interest rates.
Detailed explanation-5: -The Board of Governors of the Federal Reserve System and the Federal Open Market Committee (FOMC) determines monetary policy.