"Monetary" refers to anything related to money or currency. It encompasses the systems and policies that govern the creation, distribution, and management of money within an economy. This includes aspects like interest rates, inflation, and the overall money supply, which are crucial for economic stability and growth. Monetary policy is a key tool used by central banks, such as the Federal Reserve in the United States, to influence economic activity. By adjusting interest rates and controlling the money supply, these institutions aim to achieve goals like full employment and price stability, impacting everyday financial decisions for individuals and businesses.