8. What's the goal of monetary policy? What's the government's main tool for enacting monetary policy?

Question

Question

8. Whats the goal of monetary policy? Whats the governments main tool for enacting monetary policy?

Answer 1

Answer #1

The goal of monetary policy is to promote maximum employment, stability in prices and leads to moderate interest rate and economic growth.

Government monetary policy tools

open market operations

reserve requirement

repo rate

discount rate

margin requirement

moral Suassion

Rationing

Answer 2

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