Discuss with example monetary policy and how it establishes federal reserve structure of country?

Q: Which statement best describes a responsibility of the Federal Reserve System for the United States?…

A: Federal Reserve system for the US.  Fed is the central bank of US.  The monetary policy is…

Q: What entity decides what the reserve requirement is?

A: Reserve requirement is the monetary amount that commercial bank has to keep with the federal Bank as…

Q: Discuss with example of monetary policy and how it established federal reserve structure of country?

A: Solution: Monetary Policy: It is a policy which is pursued by the central bank to administer,…

Q: Discuss with examples monetary Policy and how it establishes federal reserve structure of country?…

A: Governments use MP (monetary policy) to manipulate economic growth, specifically by controlling the…

Q: What is the major objective of monetary policy in the US economy?

A: Monetary policy, which is set by the nation's central bank, aims to regulate the total amount of…

Q: What role does the federal reserve bank play in conducting monetary policy, fiscal policy, and…

A: Federal Reserve Bank is the Central Bank of the United States, created by the Congress. Federal…

Q: How does the Central Bank spend it's

A: National banks influence the amount of cash available for use by trading government protections…

Q: Explain how does monetary policy affect the economy and business activities?

A: The monetary policy is the central bank's policy of money supply where central bank influences the…

Q: How does the Federal Reserve control the money supply in the United States

A: The Fed can influence the provision of funds by changiñg the reserve requirements, which usually…

Q: What are the characteristics of the Central Bank.

A: Central Bank is an apex institute under which all the commercial banks are registered. Central Bank…

Q: What are the tools the reserve bank is using in Australia to run a monetary policy?

A: There are four primary tools for the central bank of any country to have control in the money…

Q: Why does a country need a Central Bank?

A: The central bank is an apex financial institution of a country.

Q: monetary reserve?

A: The banks which serve the general people and companies, are called commercial banks. Monetary…

Q: WHAT ARE THE GOALS OF MONETARY POLICY?

A: The expression "monetary policy" tells the how much cash and credit in the U.S. economy by Federal…

Q: Why are bank accounts included in our definition of the money supply?

A: It is the total stock of money that is held by the people of a country at a particular time.

Q: How study in economic would benefit the central bank and nation.

A: Economics is the study of social science which states the relationship between ends and scarce…

Q: what kind of monetary policy can be used to fight against recession and depression

A: Recession is a temporary period of economic decline which leads to a fall in GDP for two successive…

Q: How should the Federal Reserve Bank execute Monetary Policy?

A: Monetary policy refers to the actions undertaken by a central bank, such as the Federal Reserve in…

Q: How monetary policy works, and its benefits.

A: Monetary policy may be a central bank's actions and communications that manage the money supply. the…

Q: Where does the Central Bank's profit go?

A: Central Bank of an economy cab earn profit in terms of interest income as it provides loan to the…

Monetary Policy and Equation of Exchange

The monetary policy has been defined as the policy that is used by the Federal Reserve (the central bank of the US) or the central bank (the central bank of India is RBI) along with the use of the supply of money to accomplish certain macroeconomic policies. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

Monetary Economics

As from the name, it is very evident that monetary economics deals with the monetary theory of economics. Therefore, we can say that monetary economics, is that part of economics that provides us with the idea or notion of analyzing money as a holding with its function, which acts as the medium of exchange, the store of value through which the buying and selling are done and also the unit of account. It also helps in formulating the framework of the monetary policy of a bank in an economy which ultimately results in the welfare of the people residing in that particular economy. The monetary policy of an economy also helps to analyze and evaluate the financial health of it.