Explain the 4 tools of monetary policy and how they impact
interest rates, financial markets, housing,...
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Finance
Explain the 4 tools of monetary policy and how they impactinterest rates, financial markets, housing, and GDP
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Monetary policy is the macroeconomic policy laid down by the central bank It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation consumption growth and liquidity The four tools of monetary policy are Discount rate Reserve requirements Open market operations interest on reserves The discount rate is the interest rate Reserve Banks charge commercial banks for shortterm
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