Question

Monetary policy refers to:

A. decisions to determine the government's budget.
B. the determination of the nation's money supply.
C. government policies aimed at changing the underlying structure or institutions of the economy.
D. policy directed toward increasing exports and reducing imports.

Answer 1

The Correct Answer is B

The determination of the nation's money supply.

Step-by-step explanation:

• The phrase monetary policy applies to actions practiced by central banks to affect monetary measures or other financial conditions.
• Monetary policy generally operates on the values of the money supply or measurements of money supply, availability of credit and Interest rates.
• Monetary policy ultimately operates by its influence on the expenses circulates in the economy.