Question

Which policy affects the prices of assets, and short-term and long-term interest rates?(1 point)
Responses

reserve requirements
reserve requirements

monetary policy
monetary policy

fiscal policy
fiscal policy

tax policy

Answer 1

The correct answer is **monetary policy**. Monetary policy, implemented by a central bank, affects the prices of assets, and short-term and long-term interest rates through tools such as interest rate adjustments and open market operations.