Question:
How can Central Banks implement Monetary Policy?
Author: eric_galvaoAnswer:
-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
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