ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Easy money policy, or expansionary monetary policy, is a central bank policy that lowers short-term interest rates. As a result, it makes money less expensive to borrow to boost economic development. Every country’s Central Bank is in charge of regulating the country’s money supply.

Detailed explanation-2: -"Easy” or expansionary monetary policy occurs when the Fed tries to increase money supply by expanding excess reserves in order to stimulate the economy. 3.

Detailed explanation-3: -Expansionary monetary policy is when a central bank uses its tools to stimulate the economy. That increases the money supply, lowers interest rates, and increases demand. It boosts economic growth. It lowers the value of the currency, thereby decreasing the exchange rate.

Detailed explanation-4: -What Is Easy Money? Easy money, in academic terms, denotes a condition in the money supply and monetary policy where the U.S. Federal Reserve (Fed) allows cash to build up within the banking system. This lowers interest rates and makes it easier for banks and lenders to loan money to the population.

Detailed explanation-5: -Expansionary Monetary Policy Also known as loose monetary policy, expansionary policy increases the supply of money and credit to generate economic growth. A central bank may deploy an expansionist monetary policy to reduce unemployment and boost growth during hard economic times.