Question

Feds System Tools and Monetary Policy Quick Check
5 of 55 of 5 Items
Question
Which policy affects the prices of assets, and short-term and long-term interest rates?(1 point)
Responses

monetary policy
monetary policy

tax policy
tax policy

fiscal policy
fiscal policy

reserve requirements

Answer 1

The correct response is **monetary policy**. Monetary policy is designed to manage the economy by influencing the supply of money and interest rates, which in turn affects asset prices and both short-term and long-term interest rates.