Deposit-taking institutions serve as the primary conduit through which monetary policy actions impact the economy.

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Deposit-taking institutions, such as banks, play a crucial role in monetary policy transmission. By adjusting interest rates, central banks can influence the cost of credit and borrowing, which can affect consumer and business spending. Deposit-taking institutions are the primary intermediaries that transform central bank policies into changes in the real economy.

Deposit-Taking Institutions Serve as the Primary Conduit Through Which Monetary