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How is a bank affected by the central bank policies?

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Question added by Abdullah Mahhaden, CFA, CPA , Assurance Manager , Grant Thornton
Date Posted: 2013/06/17
ESER TANRIVERDI
by ESER TANRIVERDI , Business Development Manager , Wix Pro Pty Ltd

Sometimes central banks may apply tight money policy to keep interest rate low.
They emit money with low interest rate and aim to solve the liquidity problems of banks at the market.

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