The policy that affects interest rates charged on loans and paid on savings is the Monetary policy.

Here's a step-by-step explanation:

1. Fiscal policy: This is related to government revenue and expenditure. It involves changes in tax policies, government expenditures, etc. It does not directly deal with interest rates.

2. Monetary policy: This is the process by which the monetary authority of a country (like the central bank) controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. This policy directly affects the interest rates charged on loans and paid on savings.

3. Foreign policy: This involves strategies chosen by a state to safeguard its national interests and to achieve its goals in international relations. It does not deal with interest rates.

4. Autonomous policy: This is a type of policy that is self-governing and independent. It does not directly deal with interest rates.

So, the correct answer is Monetary policy.

Question

The policy that affects interest rates charged on loans and paid on savings is the Monetary policy.

Here's a step-by-step explanation:

1. Fiscal policy: This is related to government revenue and expenditure. It involves changes in tax policies, government expenditures, etc. It does not directly deal with interest rates.

2. Monetary policy: This is the process by which the monetary authority of a country (like the central bank) controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. This policy directly affects the interest rates charged on loans and paid on savings.

3. Foreign policy: This involves strategies chosen by a state to safeguard its national interests and to achieve its goals in international relations. It does not deal with interest rates.

4. Autonomous policy: This is a type of policy that is self-governing and independent. It does not directly deal with interest rates.

So, the correct answer is Monetary policy.

Knowee AI · Accepted Answer

The policy that affects interest rates charged on loans and paid on savings is the Monetary policy.

Here's a step-by-step explanation:

1. Fiscal policy: This is related to government revenue and expenditure. It involves changes in tax policies, government expenditures, etc. It does not directly deal with interest rates.

2. Monetary policy: This is the process by which the monetary authority of a country (like the central bank) controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. This policy directly affects the interest rates charged on loans and paid on savings.

3. Foreign policy: This involves strategies chosen by a state to safeguard its national interests and to achieve its goals in international relations. It does not deal with interest rates.

4. Autonomous policy: This is a type of policy that is self-governing and independent. It does not directly deal with interest rates.

So, the correct answer is Monetary policy.

Multiple Choice QuestionWhich policy affects interest rates charged on loans and paid on savings?Multiple choice question.Fiscal policyMonetary policyForeign policyAutonomous policy

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