Question

question 1
3 pts
which of the following best describes monetary policy?
a government plan for collecting taxes and spending money
the central banks strategy to control the money supply and interest rates to influence the economy
a familys plan for budgeting monthly expenses
rules that determine how businesses set prices for goods
question 2
3 pts
what is the main goal of the federal reserve?
hint: think about how the federal reserve helps keep inflation and unemployment under control.
to collect federal taxes from citizens
to control the money supply and maintain a stable economy
to enforce environmental protection laws
to regulate advertising and protect consumers

Explanation:

• Question 1: Monetary policy is about the central bank's actions. Option A is fiscal policy (taxes and spending). Option C is a family - level budget. Option D is about business pricing rules. The central bank's strategy to control money supply and interest rates (Option B) is the definition of monetary policy.
• Question 2: The Federal Reserve (the central bank of the US) is not involved in tax collection (Option A), environmental law enforcement (Option C), or advertising regulation (Option D). Its main goal is to control the money supply and maintain a stable economy (Option B), which helps with inflation and unemployment as per the hint.

Answer:

• Question 1: B. The central bank’s strategy to control the money supply and interest rates to influence the economy
• Question 2: B. To control the money supply and maintain a stable economy