the economics of money, banking, and financial markets

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3. 
   

   New Zealand adopted inflation targeting in ____.
   A) 1990
   B) 1991
   C) 1992
   D) 1994
   Answer: A
   Diff: 2 Type: MC Page Ref: 443
   Skill: Recall
   Objective List: 18.2 List the advantages and disadvantages of inflation targeting

   
   


4. 
   

   The Reserve Bank of New Zealand ____.
   A) is one of the most independent central banks
   B) as the sole objective of price stability
   C) negotiates with the minister of finance to make a Policy Targets Agreement
   D) all of the above
   Answer: D
   Diff: 2 Type: MC Page Ref: 443
   Skill: Recall
   Objective List: 18.2 List the advantages and disadvantages of inflation targeting

   
   


5. 
   

   Tight monetary policy in New Zealand ____.
   A) brought inflation down to below 2 percent
   B) reduced unemployment
   C) experienced a growth rate occasionally greater than 5 percent
   D) all of the above
   Answer: D
   Diff: 2 Type: MC Page Ref: 444
   Skill: Recall
   Objective List: 18.1 Assess the different types of monetary policy strategy

   
   


6. 
   

   The United Kingdom uses ____ as its nominal anchor.
   A) inflation target
   B) monetary aggregates
   C) interest rate target
   D) none of the above
   Answer: A
   Diff: 2 Type: MC Page Ref: 444
   Skill: Recall
   Objective List: 18.2 List the advantages and disadvantages of inflation targeting