The use of interest rates to control the money supply is a
ECONOMICS
WAEC 2019
The use of interest rates to control the money supply is a
- A. control policy
- B. monetary policy
- C. developmental policy
- D. fiscal policy
Correct Answer: B. monetary policy
Explanation
Monetary policy is made up of policies drafted by the central bank to manage the supply of money and interest rates, aimed at controlling inflation, consumption, growth, and liquidity.
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