An increase in the discount rate

A monetary system is a set of institutions, policies, and laws that govern the creation, distribution, use, and regulation of a country's currency.  The three main economic functions of money are: medium of exchange, unit of account, and store of value.  Monetary policy is a set of actions that control a country's money supply and achieve economic growth. Monetary policy strategies include: changing bank reserve requirements and revising interest rates.  Monetary policy is commonly classified as either expansionary or contractionary. Contractionary monetary policy, also known as tight... Show more

A monetary system is a set of institutions, policies, and laws that govern the creation, distribution, use, and regulation of a country's currency. 

The three main economic functions of money are: medium of exchange, unit of account, and store of value. 

Monetary policy is a set of actions that control a country's money supply and achieve economic growth. Monetary policy strategies include: changing bank reserve requirements and revising interest rates. 
Monetary policy is commonly classified as either expansionary or contractionary. Contractionary monetary policy, also known as tight monetary policy, decreases a nation's money supply to keep the economy in balance and curb inflation. 
The money supply is the total amount of money in circulation, including cash, coins, and balances in bank accounts. Some standard measures of the money supply include: Monetary base, M1, and M2. 
The most common type of monetary system is fiat money. Fiat money is made up of paper currency or a base metal coin. However, today, most of fiat money is in the form of bank balances and records of credit or debit card purchases. 

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