Which of the following is a tool that is used by the central bank to control the quantity of money? * a. gdp b. excess reserve c. open market operations d. government expenditure multiplier
Which of the following is a tool that is used by the central bank to control the quantity of money? *
a.
b.
c. open market operations
d. government expenditure multiplier
A central bank is a government-run organization in charge of overseeing the money supply, or the total amount of money in circulation, and ensuring that a country's or a group of countries' currency is in good functioning order. For many central banks, price stability is a top priority.
Monetary policy is the control of the amount of money available in an economy as well as the routes via which additional money is distributed. The purpose of a central bank's money supply regulation is to influence macroeconomic variables such as inflation, consumption, economic growth, and general liquidity.
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