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What is monetary policy?
Monetary Policy is the regulation of the money supply and interest rates by a central bank in order to control inflation and stabilize currency. This policy influences the borrowing and spending of loan. The objective for monetary policy is to try and establish economic growth with stable prices.
The United States monetary policy affects not only all kinds of economic and financial decisions which are like applying a loan to buy a house, an automobile, to start business, or putting savings in a bank, buying bonds or stocks but also other countries' monetary policy.…
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