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Zorluk: OrtaCentral Banking Functions and Monetary Policy Tools

In an economy experiencing rapid credit expansion and high liquidity in the commercial banking sector, the Central Bank mandates all commercial banks to lodge an additional, non-interest-bearing percentage of their total deposit liabilities directly with the apex bank beyond the statutory reserve threshold. Which monetary policy instrument has the Central Bank deployed to curb bank liquidity?

  1. Special depositsCevap
  2. B
    Open market operations
  3. C
    Moral suasion
  4. D
    Bank rate reduction

Cevap

Special deposits
Special deposits are an explicit contractionary monetary tool used by central banks to sterilize excess lending capacity by requiring commercial banks to keep additional funds sequestered at the central bank over and above standard cash reserve requirements.

Adım Adım Çözüm

1
Analyze the Central Bank action described in the scenario.
The Central Bank forces commercial banks to freeze an extra percentage of deposits beyond statutory requirements.
Identifying the specific mechanism helps distinguish statutory requirements from extraordinary monetary tools.
2
Evaluate the defined monetary policy tools against the action.
Direct impoundment of funds beyond statutory liquidity ratios defines Special Deposits.
Special deposits reduce the cash reserve available for commercial bank credit creation immediately.

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Central Banking Functions and Monetary Policy Tools
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Central Banking Functions and Monetary Policy Tools

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