Central bank performs several functions Describe how each tool-00151
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vu bt301 Introduction to Biotechnology.
It can also be found in
vu bt301 Mid Term Solved Past Paper No. 2.
Question 1: Central bank performs several functions. Describe how each tool of monetary policy is used in fulfilling each of those roles.
Answer:
In 1992, the Bank of Canada eliminated the reserve requirement entirely. What do you think would happen if the State Bank of Pakistan followed the same courseAlternatively, suppose that following an act of Parliament, the State Bank of Pakistan started to pay interest on required reserves. Would the change have an impact on the market for reserves?
