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The term “money have” aren’t indicates the full, secure, monetary property you to properties and you will enterprises may use and then make payments or perhaps to hold since the brief-identity assets. On the other hand, elevating rates if you are paying a lot more attention to the central lender debts try known as financial contraction otherwise tightening (which leads to a decline of bank set aside places on the main bank ledger). Lowering rates by removing the amount of attention repaid on the central bank debts or to find property such as bank loans and you can regulators ties to possess high cost (which results in a rise in bank set aside dumps on the main bank ledger) is named monetary extension or monetary easing.

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