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Theory and Practice of Central Banking
What is the primary distinction between a central bank and a commercial bank?
A central bank is a banker to the government and commercial banks, focused on monetary stability rather than profit, while a commercial bank accepts public deposits and extends credit for profit.
What is 'helicopter money' as an unconventional monetary policy tool?
Direct money transfer to public to stimulate spending and inflation.
Which act governs the establishment and functioning of the Reserve Bank of India?
The Reserve Bank of India Act, 1934 governs the establishment, constitution, and functions of the RBI as India's central bank.
What is the 'announcement effect' in the context of monetary policy?
Market reaction to anticipated central bank policy changes before implementation.
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