what is montary policy?

Question

answer in middle school word

Answer 1

The Government's policy regarding money. How it is collected, used, allocated and spent etc.

You need to do your own research if this is for school work or you won't learn anything.

Got it!

Answer 2

Monitary Policy is controling $$$.

Look at the economy as a Pie factory (Central Bank). The Monetary Policy follows who's eating the pie and how fast they're eating the pie. When the Pie Factory (Central Bank) decides to make lots of pie (money) then they're deciding to help the economy to grow. Eventually, they'll make too many pies and have to cut back on making them because we're not eating them all.

Additionally, the Pie Factory has to work with other countries (exchange rate) to give pies, and get pies from the other country. The other country will also have a Pie Factory (central bank) who is following who's eating the pies, and how fast the pies are being eaten.

There is also the ppl who work at the Pie Factory (all workers in the country from the janitors, lawyers, priests, scientists). It's the Pie Factory's job to follow all the workers and follow who's working and not working. When too many are not working, the the Pie Factory (Central Bank) changes policy.

Monetary policy uses these tools to help them: interest rates (produe lots of pies, or fewer pies), either directly or indirectly through open market operations, setting reserve requirements (reserve req are like saying you've got to have 2 pies available at all times), or trading in foreign exchange markets (getting Pies from USA to Canada).

Former Chairmen of the Fed (Pie Factory), Alan Greenspan favored monetary policy. Current Charimen of the Fed (Pie Factory), Ben Bernikie is a Kensian.

Answer 3

I guess it's somebody allowed to publicly ride a horse on the city streets.