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Question 3 What are the tools at disposal of the central bank in the conduction of its monetary policies and how these tools effect the
Question 3
- 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?
- Discuss the role of reserves at central bank in establishing an interbank market for borrowing and lending? How this markets interest rate effects the other interest rates prevailing in the market?
Question 4:
Describe the bsic facts about term structure in the yield curve and other historic data?
How can this yield curve be used to predict the future interest rates?
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