Monetary Policy

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The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves).

[Source: http://www.investopedia.com/terms/m/monetarypolicy.asp]


Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University