Which of the following areas is not covered by monetary policy?

The area that is not covered by monetary policy is public borrowing and spending. Monetary policy primarily focuses on managing the economy through the control of the money supply, interest rates, and influencing exchange rates. These tools are used by central banks to achieve macroeconomic objectives such as controlling inflation, maintaining employment levels, and ensuring overall economic stability.

Public borrowing and spending, on the other hand, falls under the realm of fiscal policy. Fiscal policy is managed by the government and involves decisions about taxation and government spending. While monetary policy can influence the economy by adjusting interest rates or the money supply, it does not directly control government borrowing or spending levels. This distinction is crucial for understanding how different policies interact to manage economic conditions.