Question

Which of the items below explains U.S. monetary policy? Please choose the best answer.

A: Monetary policy includes the exchange rate on the U.S. dollar in foreign markets
B: Monetary policy includes the steps the nation's central bank takes to ensure a healthy economy
C: Monetary Policy prevents future economic downturns and financial panics
D: Monetary policy ensures steady job growth

Answer 1

[AI-generated answer — Bot GPT 3.5]

The best answer is B: Monetary policy includes the steps the nation's central bank takes to ensure a healthy economy. Monetary policy refers to the actions and measures taken by the central bank (in the case of the U.S., the Federal Reserve) to manage and control the money supply and interest rates in the economy to achieve certain macroeconomic objectives and promote economic stability and growth.