Monetary policy is BEST described as A) benefits received by employees in addition to wages and salaries. B) actions by the Federal Reserve System to expand or contract the money supply. C) a system that relies on supply and demand to determine the value of one currency to another. D) actions by the federal government to use spending and revenue collection to influence the economy.

Question

Monetary policy is BEST described as A) benefits received by employees in addition to wages and salaries.	 B) actions by the Federal Reserve System to expand or contract the money supply.	 C) a system that relies on supply and demand to determine the value of one currency to another.	 D) actions by the federal government to use spending and revenue collection to influence the economy.

helder_edwin · Answer

B

anonymous · Answer

Monetary policy always refers to MONEY (the name kind of gives it away).  So reading through the answer choices you can process of elimination and maybe get a couple of those down.  One thing to remember is that the Federal Reserve System is in charge of controlling the money so another point in favor of B.  At the end of the day it is helpful to memorize this little tidbit but little memory tricks can help (like Monetary policy involves the amount of MONEY)