What does “monetary policy” mean?

a. federal reserve policies on creating new banks

b. political policies pursued by the federal government

c. actions the federal reserve takes to influence the economy

d. decisions about how much the federal reserve charges members

The answer is "C. actions the Federal Reserve takes to influence the economy".

Monetary policy is the way central banks oversee liquidity to make monetary development. Liquidity is how much there is in the cash supply. That incorporates credit, money, checks, and currency showcase shared assets.  

Preferably, monetary policy should work deliver glove with the national government's financial approach. It once in a while works along these lines. Government pioneers get re-chose for lessening charges or expanding spending.

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