Monetary policy is the domain of a nation's central bank. ... By buying or selling government securities (usually bonds), the Fed—or a central bank—affects the money supply and interest rates. If, for example, the Fed buys government securities, it pays with a check drawn on itself.
- Why is consumer spending important? - Consumer spending is an important economic indicator... (Read More)
- What happens to consumer spending during a recession? - During recessions, of course, consumers set stricter... (Read More)
- What is holding money? - Essentially, it's convenient to hold a certain... (Read More)
- Who is in charge of monetary policy? - For example, in the United States, the... (Read More)