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What is the main goal of monetary policy?
To maintain economic stability
Which institution in Indonesia is responsible for monetary policy?
Bank Indonesia
What happens if the money supply is too high?
Inflation
What is monetary policy talk about?
money supply
What is open market operations?
Buying and selling government securities
If Bank Indonesia sells government securities, what happens to the money supply?
It decreases
If Bank Indonesia buys government securities, what happens to the money supply?
It increases
What is the minimum reserve requirement (GWM)?
The percentage of deposits banks must keep as reserves
What is credit policy?
The policy regulates about how banks give loans
What is fiscal policy talk about?
Government income (revenue) and expenditure (spending)
Who manages fiscal policy in Indonesia?
Ministry of Finance
Who manages monetary policy in Indonesia?
Bank Indonesia
What is APBN stand for?
Anggaran Pendapatan dan Belanja Negara
Give one instrument of fiscal policy
Government expenditure/ transfer payments/ taxation
Which policy (monetary or fiscal) controls interest rates?
Monetary policy
Which policy (monetary or fiscal) changes tax rates?
Fiscal policy
