CHAPTER TWO
Monetary Policy—Implications for Bank Management
CHAPTER STRUCTURE
Section II Application of the Monetary Policy Tools in India
KEY TAKEAWAYS FROM THE CHAPTER
Understand why banks hold reserves
Learn about the tools of monetary policy
Understand how the monetary policy impacts banking operations and management
SECTION I
BASIC CONCEPTS
A Macroeconomic View
The primary objective of a country's government is to achieve economic stability and growth. Hence, macroeconomic policies will typically target and monitor three basic indicators: prices, employment and balance ...
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