What does monetary policy regulate?

Monetary policy primarily regulates the amount of money in circulation within an economy. It encompasses the actions taken by a country's central bank to control the money supply, manage inflation, and influence interest rates, with the overall aim of achieving economic stability and growth. By regulating the money supply, central banks can ensure that there is enough liquidity to support economic activity while preventing excessive inflation that can erode purchasing power.

While other options touch on integral aspects of financial markets or real estate, they do not fall under the scope of monetary policy. For instance, property taxes are determined by local governments and are not influenced by the central bank's monetary policy decisions. The payment of commissions to agents pertains to real estate transactions and is subject to industry standards and regulations rather than monetary policy. Similarly, while interest rates on loans can be influenced by monetary policy, they are not exclusively regulated by it; they also depend on individual institutions' lending practices and market demand for loans. The overarching function of monetary policy remains centered on managing the money supply in the economy.