Monetary Policy Flashcards
1
Q
Define the term monetary policy.
A
Management of money to achieve government objectives.
2
Q
Define the term interest rates.
A
Cost of borrowing, reward for saving.
3
Q
What is fiscal policy?
A
Government spending in tax to achieve macroeconomic objectives.
4
Q
What is quantitative easing?
A
A method adopted by the Bank of England to increase the money supply by purchasing government bonds from high street banks to increase aggregate demand.
