SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level (DONEEEEEEE)

» Start this Course
(Practice similar questions for free)
Question:

How can Central Banks implement Monetary Policy?

Author: eric_galvao



Answer:

-The Central Bank can Manage the Money Supply via affecting the Availability of Credit and its Cost. This is done via Interest Rates or Quantitative Easing -Capital Requirements can also be Set up, affecting the amount of Loans that Banks can issue -The Exchange Rate can also be Influenced, by Selling and Buying Currencies and Changing the Interest Rate -Responsible for Issuing Banknotes and making the Confidence in the Currency is Maintained


0 / 5  (0 ratings)

1 answer(s) in total