Question

In what ways can the national central banks influence the conduct of monetary policy?

Short answer

Central banks conduct monetary policy by adjusting the supply of money, generally through open market operations.

Step-by-step solution

Concept Introduction

A central bank is a public establishment that deals with the cash of a nation or gathering of nations and control the cash supply - in a real sense, how much cash is available for use. The fundamental goal of numerous central banks is cost security.

Explanation

Affecting financing costs, printing money, and setting bank save necessities are generally devices central banks use to control the money supply. Different strategies central banks use incorporate open market tasks and quantitative facilitating, which include selling or purchasing up government securities and protections.

Final answer

Central banks are able to clear checks, increase or decrease money supply by selling gov bonds.