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The use of interest rates to control the money supply is a

Economics
WAEC 2019

The use of interest rates to control the money supply is a

  • A. control policy
  • B. monetary policy
  • C. developmental policy
  • D. fiscal policy
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Correct Answer: Option B
Explanation

Monetary policy is made up of policies drafted by the central bank to manage the supply of money and interest rates, aimed at controlling inflation, consumption, growth, and liquidity.


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