Assess the following statements. Which one best describes monetary policy?

Question

A) Monetary policy tries to create the highest economic growth rate.
B) Monetary policy was discredited in the 1970s.
C) Monetary policy focuses on the money supply.
D) Monetary policy focuses on spending and taxation.

Answer 1

The statement that best describes monetary policy is:

C) Monetary policy focuses on the money supply.

Monetary policy involves managing the money supply and interest rates to influence economic activity, control inflation, and stabilize the currency.