Question

Monetary policy and how they link to financial institution

Answer 1

A financial institution is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. monetary policy is the weapon of central bank to influence the supply of money in the market. as the financial instituion are part of the economy and are closely related to demand and supply of money any change to the monetary system by the central bank through monetary policy will affect the financial institution so, financial institution and monetary policy are related.