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# Bank Monetary Policy

## Definition

The practices and decisions by which banks manage their note issuance, credit extension, and reserve levels to maintain stability and serve economic needs. This includes decisions about discounting, cash accounts, and note circulation.

## Source Chapter

Book II, Chapter 2

## Context

Smith examines how banks must make policy decisions about their operations to maintain stability while serving economic needs. He analyses the trade-offs involved in different policy choices and their effects on the broader economy.

## Economic Domain

Regulation

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