Purpose

What Is Contractionary Policy? Definition, Purpose, and Example

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A contractionary policy is a policy used by governments such as the United States to shrink the money measurement to reduce the rate of currency circulation. It is a macroeconomic tool to control high money demand. Typically carried out by the Central Bank, this policy is done through raising interest rates, increasing bank reserve requirements, … Read more

Reserve Banks: Definition, Purpose, Types and Requirements

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Reserve Banks, also known as central banks, are financial institutions that play a crucial role in a country’s monetary system. They are typically responsible for controlling and regulating the money supply, implementing monetary policy, and ensuring the stability of the financial system. Reserve Banks serve as the custodians of a nation’s reserves and act as … Read more

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