Cash-flow analysis and monetary policy

Part 1:

What are the basic objectives of monetary policy? Comment on the cause-effect chain through which monetary policy is made effective. What are the major strengths of monetary policy?

A minimum of 250-300 words is required and at least one credible source.

Part 2:

What sort of difficulty can you imagine the manager of an organization would be in, if the organization did not routinely prepare cash flow forecasts and working capital analyses? 

A minimum of 250-300 words is required and at least one credible source.

Due tonight (September 6). The responses must be separate from each other.