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Give examples of financial repression. [30%] B. How does an increase in bank reserve requirement affect the interest rate spread and the allocation of loanable
Give examples of financial repression. [30%]
B. How does an increase in bank reserve requirement affect the interest rate spread and the allocation of loanable funds to the private sector? [40%]
C. Define shadow banking and explain its benefits, risks and implications for monetary policy.
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