SERIES 6 ASKS QUESTIONS ON MONETARY AND FISCAL POLICY

The Series 6 exam asks questions on the difference between monetary policy and fiscal policy, so you should know the differences between the two.

Fiscal policy is the budgetary policy of the U.S. government.  It is largely controlled by Congress.  Congress has the power of the purse.

Monetary policy, on the other hand, is controlled by the Federal Reserve Board, or the Fed.  The Fed, by its monetary policy, controls the amount of money on hand at banks and held by individuals and businesses.  Monetary policy also involves the control of interest rates.