Central Banks in the World Are Increasingly Experimenting with Unconventional

question 59

Essay

Central banks in the world are increasingly experimenting with unconventional monetary policies. Describe
two types of unconventional monetary policies, and discuss why these policies may or may not work.

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Definitions:

Credit Balance

A situation where the sum of credits in an account exceeds the sum of debits, often indicating a liability or revenue.

Unearned Revenue

Prepayment for goods or services which have not yet been delivered or performed, recognized as a liability on the balance sheet until the goods or services are delivered.

Sales Revenue

The sum of revenue from the sale of products or services that are fundamental to a company's main business activities.

Accounting Equation

The accounting equation is a fundamental principle of financial accounting that states assets equal liabilities plus equity.