Which of the Following Is an Example of Monetary Policy

question 44

Multiple Choice

Which of the following is an example of monetary policy?

• A) A bank raises the interest rate on loans to compensate for losses on bad loans.
• B) Old currency is pulled out of circulation and replaced with new currency due to inflated old currency.
• C) The Federal Reserve reduces the money supply in an effort to reduce inflation.
• D) The legislature increases government spending to reduce unemployment.

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Definitions:

Nursing

Nursing is the profession or practice of providing care for the sick and infirm, focusing on the protection, promotion, and optimization of health and abilities.

Adrenal Hormones

Chemical messengers produced by the adrenal glands, involved in the body's response to stress, metabolism, and the immune system.

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that regulates sleep-wake cycles.

Hormones

Chemical messengers produced by glands in the body that regulate processes such as growth, metabolism, and mood.