Which one of the following is not one of the monetary policy goals of the Fed? A. Maintain price stability. B. Maintain high employment. C. Maintain stability of financial markets and institutions. D. Reduce income inequality.

Question

Social Studies

Fabian Wong

25 September, 04:19

Which one of the following is not one of the monetary policy goals of the Fed? A. Maintain price stability. B. Maintain high employment. C. Maintain stability of financial markets and institutions. D. Reduce income inequality.

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Answers (1)

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Lilian Ortega · Answer 1

Reduce income inequality

Explanation:

Monetary policy an economic tool that the authority of a country use in the management of money supply. It is how the central bank of the country control the amount of that is supplied, this includes loans mortgages and bonds aimed at economic growth.

By implementing a very good monetary policy the Fed would be able to maintain stable prices, good loan rate interest and maintain a high employment ability.

The monetary policy does not control the amount of money that an individual makes and this means that it can not reduce income inequality