CHAPTER TWO
Monetary Policy—Implications for Bank Management
CHAPTER STRUCTURE
Section II Application of the Monetary Policy Tools in India
Section III Monetary Policy Tools in Select Countries
Annexure I, II and III (Case study)
KEY TAKEAWAYS FROM THE CHAPTER
- Understand the role of central bank and monetary policy in economic growth.
- 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 ...
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