When Central bank tries to regulate demand for credit - Interest rate , When Central bank controls the supply of credit by buying or selling bonds - open market operations , monetary policy used when central bank wants to expand the supply of money in the economy - expansionary monetary policy , The amount commercial banks need to keep in reserves - bank's liquidity ratio , a monetary policy whereby a central bank purchases at scale government bonds or other financial assets in order to inject money into the economy to expand economic activity - Quantitative easing , monetary policy also known as ‘tight’ money policy, is one, which is aimed at reducing the money supply in the economy - contractionary monetary policy , In case of emergencies commercial banks can ask Central Bank to provide funding. - The lender of Last Resort, a theory that says the government should increase demand to boost growth. - Keynes' theory , People demand money because it is a convenient medium of exchange - Transaction motive , money which is held for the right time to purchase assets e.g. stock and shares or bonds to make capital gains - speculative motive ,
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