What Are the Two Main Purposes of Monetary Policy

question 37

Multiple Choice

What are the two main purposes of monetary policy?

• A) to lend money to consumers and borrow money from banks
• B) to control inflation and limit unemployment
• C) to help developing countries and American business interests
• D) to equalize income disparity among citizens and lower the cost of goods and services

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Definitions:

Blood Supply

The provision of blood to different parts of the body, facilitated by the circulatory system.

Creatine Phosphokinase

An enzyme found in the heart, brain, and skeletal muscle that plays a key role in the energy storage and utilization processes.

Oxygen-poor Blood

Blood that has delivered its oxygen to the tissues of the body and is returning to the lungs to be reoxygenated.

Pulmonary Valves

Heart valves located at the opening of the pulmonary artery that prevent backflow of blood into the right ventricle.