Possessing a currency helps the government to pursue national economic objectives. For example, policymakers manipulate money circulation for increasing employment, GDP, price stability by using tools such as interest rates, reserves, bonds, etc. Likewise, a country’s monetary policy Monetary Policy Monetary policy refers to the steps taken by a country’s central bank to control the money supply for economic stability. A strong or weak currency demonstrates a powerful or incompetent economic system, respectively. The currency of a country and its financial wealth goes hand-in-hand. Besides being a unit of exchange, it is also a sign of value and wealth Wealth Wealth refers to the overall value of assets, including tangible, intangible, and financial, accumulated by an individual, business, organization, or nation. It is an integral part of a country’s identity and ensures its economic stability. NC includes paper money and coins legally in circulation in a country.
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