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A. What is a contractionary monetary policy? How does it impact the banking sector? How changes in interest rates affect the equity of a bank?

A. What is a contractionary monetary policy? How does it impact the banking sector? How changes in interest rates affect the equity of a bank? Why does Bangladesh bank change monetary policy?

B. Write down at least five risks bank faces and discuss how banks in Bangladesh are exposed to it? What could be done to reduce these risks?'

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