September 2024

One of the main goals of monetary policy is to help the economy grow. The word “economic growth” comes from the fact that economies that grow over time make more things and services. An economy that is doing well has many benefits, two of which are more job opportunities and a higher level of living […]

It helps keep inflation in check and boosts economic growth by making more cash accessible. The central bank can use interest rates, reserve requirements, and required stocks of government bonds as tools. All of these methods change how much money banks can give. No matter how many loans are taken out, the total amount of