Question: Give examples of financial repression. [30%] B. How does an increase in bank reserve requirement affect the interest rate spread and the allocation of loanable

Give examples of financial repression. [30%]

B. How does an increase in bank reserve requirement affect the interest rate spread and the allocation of loanable funds to the private sector? [40%]

C. Define shadow banking and explain its benefits, risks and implications for monetary policy.

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