Economic policy refers to actions governments take in economic fields like monetary policy. Monetary policy uses tools like interest rates, cash reserve ratios, and open market operations by a central bank to influence the money supply and stabilize prices. The goals of economic policy are typically full employment, price stability, and economic growth.

1. Economic policy refers to the
actions that governments take in the
economic field. Such policies are
often influence by international
institutions like international
monetary fund or world bank.

2. Monetary policy means policy of the
government to stabilize economic
system, price level, monetary
policy, etc with the help of
monetary authority of the country
(RMA).

3. a.Full employment of all available resources
b.Price Stability
c.Economic growth

4. A situation in which all available labor
resources are being used in the most
economically efficient way. Full
employment embodies the highest
amount of skilled and unskilled labor that
could be employed within an economy at
any given time.

5. The situation whereby the prices of
goods and services offered in the
marketplace either change very
slowly or do not change at all.
Factors affecting this include
employment and inflation.

6. Continuous increases in a country’s
productive capacity, as measured by
comparing gross national product (GNP) in
a year with the GNP in the previous year.

7. 1.Cash Reserve Ratio
2.Open market Operations
3.Bank Rate Policy

8. The percentage of a bank’s total
monetary holdings that must be kept
on hand in the form of actual
currency. Under fractional-reserve
banking, a bank may lend out any
money deposited there, but must
maintain on site the amount
mandated by the cash reserve ratio.

9. The buying and selling of government
securities by a central bank, such as the
Royal Monetary of Authority in the
Bhutan, in order to control the money
supply.

10. It is same as rate of interest. Money
supply can be stabilized by increasing
and decreasing interest rate.

11. Usually relating to taxation and
government spending, with the
goals of full employment, price
stability, and economic growth. By
changing tax laws, the government
can effectively modify the amount
of disposable income available to
its taxpayers.

12. 1.Taxation
2.Public Borrowing
3.Public Expenditures

13. The compulsory payment made
by the people to the government
authority for the service render
by the latter (government)

14. During the inflation period that
is when there is excess of money
supply in the economy, the
government borrows excess
money from the public.

15. In order to stabilize the
economy, the public expenditure
need to be increases and
decreases.

16. IS
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17. IS
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