Monetary Policy: Refers to programs that try to increase or decrease the nation’s level of business by regulating the supply of money and credit. This policy tool has a goal of increasing or decreasing the level of business activity in an economy. Monetary policy is RBI’s primary responsibility. Below are the main monetary policy tools that RBI uses: A) Quantitative Credit Control Methods: 1) Repo and Reverse Repo: -Repo or repurchase option is a means of short-term borrowing‚ wherein
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MONETARY POLICY Intro- • MP alongside FP is a major policy instrument of the govt’s macroeconomic management to maintain a sustainable rate of eco growth‚ promote eco prosperity and welfare for the Aust economy. • Define MP • MP is implemented by RBA (which is independent of govt. influence) • Outline key objectives of MP Para 1- • MP plays a counter-cyclical role in the Aust economy (changes in stance are used to smooth out fluctuations in output over the business cycle.) o I.e. MP is
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“The EU remains an effective model of market creation and regulation for Europe.” How valid is this claim? Introduction 60 years of European Union has changed the economic landscape of Europe and the way European countries and businesses interact with each other. EU has laid ground to a remarkable progress in free trade of goods‚ services‚ mobility of people and flow of capital in this part of the world. 20 years from the creation of single market in 1992 marks an important milestone
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the war‚ and was able to settle disputes for the settlement of western lands between the states‚ the Articles of Confederation failed to create an efficient way to settle the national debt‚ and were unable to effectively solve the problem of piracy. Thus‚ to a lesser extent‚ the government‚ under the Articles of Confederation‚ were effective in solving the problems that confronted the new nation. When the Treaty of Paris was signed America gained a lot of land up to the Mississippi River. In return
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Monetary Policy Monetary policy refers to those actions taken by the Federal Reserve‚ affecting interest rates‚ the exchange rate and the money supply‚ in order to influence the pace of spending and‚ by that‚ inflation. Over the centuries‚ the invention of money has hugely increased the ability of people to concentrate their energies on the things they do best‚ and then to trade the surpluses created‚ markedly increasing the living standards of everyone involved. Monetary policy helps the governing
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In theory‚ the bi-cameral legislature in British political system exists to ensure that policy and legislation is created democratically and secondly to protect the country from autocracy or the emergence of dictatorships. Although it could be argued that both of these functions of parliament have been apparent in recent history. In this essay I aim to answer the question to what extent is parliament an effective constraint on the executive. The first means available to parliament in scrutinizing
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The Effects of Monetary Policy on the Economy Central banks are the national authorities responsible for providing currency and implementing monetary policy. Monetary policy is a set of actions through which the monetary authority determines the conditions under which it supplies the money that circulates in the economy. Monetary policy therefore has an effect on short-term interest rates. Setting monetary policy goals has been a defining issue for economists and public opinion since the consolidation
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ECO202 1. Explicitly define both fiscal and monetary policy. 2. Compare and contrast the way Keynes and Friedman approach the economy. What are their key differences and similarities? 3. The following are five current or historical government actions dealing with macro-economic policy. For each scenario determine if it represents fiscal policy or monetary policy‚ and explain your answer. a. President Obama has proposed a budget for the next year and the House of Representatives has
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“Investing in education is the most effective way to reduce poverty” In many ways this is a difficult statement to assess. There is no doubt that education is a key initiative in the reduction of poverty. Whether it is the most effective is harder to say for sure. We can easily confirm correlation in the relationship between reduced poverty and increases in factors such as education and health. However it is no simple task to measure and compare the level of impact a component such as education has
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Question and answers for homework-1 1. What is the difference between a financial asset and a tangible asset? A tangible asset is one whose value depends upon certain physical properties‚ e.g. land‚ capital equipment and machines. A financial asset‚ which is an intangible asset‚ represents a legal claim to some future benefits or cash flows. The value of a financial asset is not related to the physical form in which the claim is recorded. 2. What is the difference between the claim of a
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