Question

The monetary transmission mechanism…

•  A. explains how the central bank transmits messages to the other banks.
•  B. explains how banks create money.
•  C. describes the ways in which changes in the monetary sector are transmitted to the rest of the economy.
•  D. describes how the Monetary Policy Committee announces its decisions.

Answer 1

•  C. describes the ways in which changes in the monetary sector are transmitted to the rest of the economy.