Question

Monetary policy is mainly concerned with regulating which of the following in an economy?

Options

• Population and literacy

• Money supply, credit, and interest rates

• Foreign trade and exchange rate

• Natural resources and technology

Answer 1

Money supply, credit, and interest rates

Explanation: 

Monetary policy is a macroeconomic tool used by the central bank to control the supply of money, availability of credit, and interest rates to maintain stability.