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Question 3: a. What are the tools at disposal of the central bank in the conduction of its monetary policies and how these tools effect

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Question 3: a. What are the tools at disposal of the central bank in the conduction of its monetary policies and how these tools effect the money supply? b. Discuss the role of reserves at central bank in establishing an interbank market for borrowing and lending? How this market's interest rate effects the other interest rates prevailing in the market? 15 marks

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