According to the Federal Reserve’s 2016 edition of Purposes and Functions, “ _ is the Federal Reserve’s actions, as a central bank, to achieve three goals specified by Congress: maximum employment, stable prices, and moderate long-term interest rates in the United States.” What should be placed in the blank spaces in the passage?
A) Fiscal Policy
B) Discount Rates
C) Interest Rates
D) Monetary Policy

Question

03-12-2019
Social Studies

contestada

According to the Federal Reserve’s 2016 edition of Purposes and Functions, “ _ is the Federal Reserve’s actions, as a central bank, to achieve three goals specified by Congress: maximum employment, stable prices, and moderate long-term interest rates in the United States.” What should be placed in the blank spaces in the passage?
A) Fiscal Policy
B) Discount Rates
C) Interest Rates
D) Monetary Policy

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fatimakincsem fatimakincsem · Answer 1 · 2019-12-10T00:09:20+01:00

The correct answer would be option D, Monetary Policy.

According to the Federal Reserve's 2016 edition of Purposes and Functions, Monetary Policy is the Federal Reserve's actions, as a central bank to achieve three goals specified by congress.

Explanation:

A monetary policy of a country is the policy formulated by the monetary authority of the country. A monetary policy simply controls the money supply. This money supply is controlled by either targeting the interest rates or by controlling the employment and prices of products in the economy.

The three goals specified by congress in the 2016 Monetary Policy edition of Federal Reserves are:

Maximum Employment
Stable Prices
Moderate long term interest rates.

These goals basically formulate the Monetary Policy. Monetary Policies are made to strengthen the currency and to increase the trust of people on the currency and economy of the country.

Learn more about Monetary Policy at:

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