Monetary+Policy

Monetary Policy


 * Monetary policy** concerns the actions of a central bank or other regulatory authorities that determine the size and rate of growth of the money supply. In the United States, the Federal Reserve is in charge of monetary policy, and implements it primarily by performing operations that influence short term interest rates and the economy. The Federal Reserve was created in 1913 to provide a central banking system. It is made up of 12 individually owned banks that report to congress. They are also in charge of managing the money supply or the amount of money available in the economy at a certain point and time.

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