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What is meant by monetary policy

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Reference no: EM132451823

Question 1: What is meant by the financial system.

Question 2: What is meant by monetary policy.

  1. The ways in which the financial system contributes to economic well-being-by transferring resources from surplus to deficit spending units;
  2. by providing a variety of financial instruments to participants;
  3. by providing a reliable and efficient payment system; by providing for a better allocation of risk in the economy;
  4. and by imposing discipline on business management. Some basic features of the financial system that will keep coming up in our study.

Reference no: EM132451823

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