which of the following is/are examples of monetary policy? which of the following is/are examples of monetary policy? the reserve requirement excess reserves. open market operations. all of the answers are correct.

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14-11-2022
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which of the following is/are examples of monetary policy? which of the following is/are examples of monetary policy? the reserve requirement excess reserves. open market operations. all of the answers are correct.

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snehashish65 snehashish65 · Answer 1 · 2022-11-16T09:28:23+01:00

Over the past few decades, significant modifications have been made to the policy frameworks within which central banks conduct their operations.

What is the role of monetary policy?

Conducting monetary policy to attain price stability (low and stable inflation) and assist in managing economic fluctuations is a crucial function of central banks

Monetary policy is viewed as a component of economic planning and strategies because it helps to establish an environment that promotes economic growth and the welfare of the general people.

Therefore, examining the effects of interest rates on inflation, investment, and GDP growth is a common technique to gauge how effective monetary policy is.

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