kinds of functions: (a) macroeconomic function when regulating inflation and price stability through the use of open market operations (OMO) and legal reserve requirements. (b) microeconomic function when functioning as the "lender of last resort" through the discount rate or the discount window.
kinds of functions: (a) macroeconomic function when regulating inflation and price stability through the use of open market operations (OMO) and legal reserve requirements. (b) microeconomic function when functioning as the "lender of last resort" through the discount rate or the discount window.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![2. The CBB influences the Bahraini economy in two main
kinds of functions:
(a) macroeconomic function when regulating inflation and
price stability through the use of open market operations
(OMO) and legal reserve requirements.
(b) microeconomic function when functioning as the "lender
of last resort" through the discount rate or the discount
window.
In each of the functions in (a) and (b), discuss how the CBB
uses these tools to influence the economy of Bahrain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6dd952b3-7f19-494f-a159-5ece57cad369%2F084e9465-18a5-4013-b8ee-8ed1cf8b298b%2Flqidht8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. The CBB influences the Bahraini economy in two main
kinds of functions:
(a) macroeconomic function when regulating inflation and
price stability through the use of open market operations
(OMO) and legal reserve requirements.
(b) microeconomic function when functioning as the "lender
of last resort" through the discount rate or the discount
window.
In each of the functions in (a) and (b), discuss how the CBB
uses these tools to influence the economy of Bahrain.
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