What tools available central bank for control money supply

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1. What are the tools available to the central bank for controlling the money supply? Discuss how manipulation of each of these tools will change the money supply and how reliable each tool is likely to be.

2. Why has the use of changes in reserve requirements as a tool of monetary policy been largely abandoned in Western economies? What were the reasons for the virtual elimination of reserve requirements? Is there a case for their revival and usage as a tool of monetary policy in the context of the country you live in? In LDCs?

Reference no: EM13897737

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