Which policy includes actions such as buying government bonds and reducing interest rates?

Monetary policy encompasses the management of a country's money supply and interest rates, primarily conducted by a central bank. The actions described, such as buying government bonds and reducing interest rates, are tools used by the central bank to influence economic activity.

When a central bank buys government bonds, it injects liquidity into the financial system, increasing the money supply. This can lead to lower interest rates as more money becomes available for lending. Lowering interest rates aims to encourage borrowing and investing, ultimately stimulating economic growth.

Other policies, like fiscal policy, involve government spending and taxation decisions made by the government rather than the central bank, while exchange policy relates to the handling of a country’s currency and exchange rates. Trade policy concerns regulations and agreements that govern international trade. Each of these has a different focus and set of tools compared to monetary policy, highlighting why the actions in the question align specifically with monetary policy.