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MACROECONOMIC POLICIES
The Governments primary objective is to achieve economic stability and growth Three indicators are targeted and monitored to achieve this objective: Prices, Employment and Balance of payments The two pillars of macroeconomic policy are Fiscal and Monetary policies
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REVERSE REPOS
For the buyer of these securities, it is a reverse repo transaction- a contract to buy and resell the securities at a predetermined date and price. Used to adjust short term surpluses. The economic effect of repos and reverse repos amounts to a secured loan This is also called a collateralized lending obligation
Management of Banking and Financial services, 2/e 16
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