Question

Which statement best explains U.S. monetary policy?(1 point)
Responses

Monetary policy prevents future economic downturns and financial panics.
Monetary policy prevents future economic downturns and financial panics.

Monetary policy ensures steady job growth.
Monetary policy ensures steady job growth.

Monetary policy includes the steps the nation’s central bank takes to ensure a healthy economy.
Monetary policy includes the steps the nation’s central bank takes to ensure a healthy economy.

Monetary policy includes the exchange rate on the U.S. dollar in foreign markets.

Answer 1

The statement that best explains U.S. monetary policy is:

"Monetary policy includes the steps the nation’s central bank takes to ensure a healthy economy."

This definition captures the overall purpose and function of monetary policy, which involves managing the money supply and interest rates to promote economic stability and growth.