Question

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

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

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

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

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.

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 statement captures the overall purpose and function of monetary policy, which is primarily managed by the Federal Reserve and aims to regulate the money supply, interest rates, and overall economic health.