Question

Monetary policy, or influencing the growth of the money supply, is carried out by the _____.

Answer 1

The government has a central bank that is oftentimes referred to the Federal Reserve Bank (or just Fed).

Answer 2

Answer: The answer is Central Bank.

Monetary policy, or influencing the growth of the money supply, is carried out by the Central Bank.

Explanation:

Monetary policy is an economic policy which manages money supply and interest rate in an economy. It is a powerful tool to regulate inflation, consumption, growth and unemployment. It is how liquidity is been managed by Central Banks to create economic growth. Different tools are used in implementing monetary policies such as purchase or sale of government securities, adjustment of interest rates and so on.