Why does the federal reserve alter monetary policy?

1. to provide services to member banks

2. to lessen the effect of natural business cycles

3. to regulate the banking industry

4. to enable banks to clear checks

Question

Social Studies

Brenton Vargas

12 March, 20:55

Why does the federal reserve alter monetary policy?

1. to provide services to member banks

2. to lessen the effect of natural business cycles

3. to regulate the banking industry

4. to enable banks to clear checks

+1

Answers (1)

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Rex Villanueva · Answer 1

Your answer would be 2, to lessen the effect of natural business cycles.

The monetary policy is how the monetary authority controls the money. Business cycles are basically how the GDP changes over time. The monetary policy would therefore be modified based on what stage the business cycle is on, in order to make it so the country doesn't lose all their money.

Why does the federal reserve alter monetary policy?1. to provide services to member banks2. to lessen the effect of natural business cycles3. to regulate the banking industry4. to enable banks to clear checks

Why does the federal reserve alter monetary policy?

1. to provide services to member banks

2. to lessen the effect of natural business cycles

3. to regulate the banking industry

4. to enable banks to clear checks