Monetary Policies

Interest Rates: Interest rates refer to the cost or price paid for borrowing money or using credit. They are a key tool used in monetary policy to influence economic activity.

Open Market Operations: Open market operations involve the buying and selling of government securities (bonds) by the central bank to control money supply and interest rates in the economy.

Reserve Requirement: Reserve requirement is the percentage of deposits that banks are required to hold as reserves, which affects their ability to lend and impacts money supply.