SSC MTS EXAM

Detailed explanation-1: -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.

Detailed explanation-2: -Quantitative easing is another monetary policy tool used by central banks. The Fed implemented an expansionary policy during the 2000s following the Great Recession, lowering interest rates and utilizing quantitative easing.

Detailed explanation-3: -Through monetary policy, a central bank can undertake an expansionary or contractionary policy. An expansionary policy aims to increase the money supply.

Detailed explanation-4: -Expansionary monetary policy: This type of monetary policy can increase the economy’s money supply through decreasing interest rates, lowering reserve requirements for banks, and the purchase of government securities by central banks.