Respuesta :

The correct option is (D) the money supply.

Further Explanation:

Monetary policy is referred to as the “central bank’s actions” and “communication” that deals with the money supply. It includes cash, checks, credit and money market “mutual funds”. The most common type of money is “credit”. It includes bonds, loans, and mortgages.

Monetary policy is broadly divided into two categories as either contradictory or expansionary.  

Monetary policy increases “liquidity” to create “economic growth”, which reduces the liquidity to stop inflation. The central bank uses interest rates, bank’s reserve requirements and also the amount of ‘government bonds’ which should be held by banks to influence the policy. All the tools influence how much a ‘bank’ can lend. The ‘volume of loans’ influences the money supply.

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Answer Details:

Grade: High School

Chapter: The Monetary Policy

Subject: Social Studies

Keywords:

money supply, the central bank, communication, credit, mutual funds, loans, expansionary, contradictory

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The monetary policy of a particular government is its plan to control: d. the money supply.

What is a monetary policy?

A monetary policy is also referred to as a fiscal policy and it can be defined as the strategic use of government expenditures and revenues, in order to influence and control macroeconomic conditions such as:

  • Employment within a country.
  • Aggregate Demand (AD)
  • Inflation
  • Money supply

In conclusion, the monetary policy of a government in a particular country refer to its plan to control the money supply within the economy.

Read more on monetary policy here: brainly.com/question/13926715

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