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This book on monetary economics and macroeconomics focuses on the reserve requirement policies of the national monetary authorities, which essentially comprises of cash reserve ratios and liquidity ratios, and how the manipulation of these indices affects the monetary base and economic activities subsequently. The theoretical and empirical approach of this investigation and econometric analysis that follows reveals possible impact of central banks' reserve policies on economic development of a nation.Its understanding will assist the central monetary authorities and other monetary institutions in making appropriate decisions required for effective management of the monetary base of a nation.