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

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

Answer 1

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

Explanation: In the U.S., the Federal Reserve uses tools like interest rates and open-market operations to influence inflation, employment, and economic growth.