Economic Institutions

Monetary Policy: The policy adopted by the monetary authority of a country that controls either interest rate payable on very short-term borrowing or money supply. It's like adjusting traffic light timings based on rush hours or off-peak times.

Capitalism: An economic system characterized by private ownership of goods and services for profit. It’s similar to a city where drivers (business owners) are free to choose their routes and destinations (market choices).

Central Bank: An institution that manages a state's currency, money supply, and interest rates. It’s like the traffic control center overseeing all the traffic lights in the city.