Question

According to G.K. Show, which of the following is a key feature of monetary policy?

Options

• It is an automatic change in money supply without human decision.

• It is a conscious action by monetary authorities to change quantity, availability, and cost of money.

• It is a policy framed only by commercial banks.

• It ignores the cost of borrowing in the economy.

Answer 1

It is a conscious action by monetary authorities to change quantity, availability, and cost of money.

Explanation: 

G.K. Show emphasizes that monetary policy is a deliberate and conscious action by authorities to alter the amount, accessibility, and cost of money in the economy.