Monetary policies are effective only when economies are charracterised by developed:Question 7Answera.Capital market and Microfinance Bank.b.Industria marketl and Mortgage Bankc.Money and Financial marketsd.Deposit Money Banks and Mortgage Banks

The effectiveness of monetary policies largely depends on the development of certain economic sectors. Here's a breakdown of the options:

a. Capital market and Microfinance Bank: While these are important components of an economy, they are not the only factors that determine the effectiveness of monetary policies.

b. Industrial market and Mortgage Bank: The industrial market is more related to fiscal policy rather than monetary policy. Mortgage banks, on the other hand, are part of the financial system but not the only determinant of the effectiveness of monetary policies.

c. Money and Financial markets: This is the most accurate answer. Monetary policies are tools used by central banks to control the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. These policies are implemented through the buying and selling of government bonds (open market operations), changes in the amount of money banks need to keep in the vault (reserve requirements), or the lending of money to banks (discount rate). All these operations are conducted in the money and financial markets.

d. Deposit Money Banks and Mortgage Banks: Similar to option A, while these are important components of an economy, they are not the only factors that determine the effectiveness of monetary policies.

So, the answer is c. Money and Financial markets.