what are regulatory and monitory agencies?

Answer 1

Do you want definitions or examples? Regulatory agencies set and enforce regulations. The Securities Exchange Commission is an example.

The Federal Reserve is a monitary agency. It sets fiscal policy -- trying to control interest rates and the money supply. It has three tools for doing this. The first is that it can set the reserve level -- which is the percentage of bank deposits that banks have to put on deposit with the Fed. The second is the Discount Rate -- which is the rate that banks have to pay in order to borrow money from the Federal Reserve. The final method involves "open market regulatoins" where the Fed buys and sells securities in the Repo Market in order to push rates up or down.