What does central bank uses monetary policy to do?

2 answers:

4 0

Monetary policy refers to the collection of actions that a central bank undertakes in order to control the quantity of money in a particular economy and the channels by which the money is supplied. In order to do so, central banks perform a variety of actions, including modifying the interest rate, buying or selling government bonds, regulating foreign exchange rates, and changing the amount of money banks are required to maintain as reserves. <u>The reason why central banks use monetary policy is to achieve certain economic objectives, such as controlling inflation, consumption, growth, and liquidity. </u>

luda_lava [24]2 years ago

3 0

Answer:

It alters the supply of money.

Explanation:

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