Reference no: EM132766981

1. If reserve requirement ratio is 0, how it affects the balance sheet of banks and non-banks?

2. Please explain how the equilibrium in the market for reserves is determined.

3. How inflation targeting help solve the problem of discretionary policy?

4. What are objectives of monetary policy?

5. What can be policy instruments?

6. What are the criteria for choosing the policy instrument?

7. What are the implications of inflation targeting?

8. Why does the Fed need to pay interest on reserves?

9. What are the goals of monetary policy? What are other goals of monetary policy?

10. When euro appreciates, would Azerbaijani customers prefer domestic wine or French wine?

When euro appreciates, the European products become expensive for Azerbaijani people. Therefore, Azerbaijani customers would rather prefer domestic wine.