the economics of money, banking, and financial markets

(Sean Pound) #1
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  1. Peak inflation in the United Kingdom was ____ in ____.
    A) 9 percent; 1991
    B) 4 percent; 1997
    C) 12 percent; 1991
    D) 8 percent; 1995
    Answer: A
    Diff: 2 Type: MC Page Ref: 444
    Skill: Recall
    Objective List: 18.2 List the advantages and disadvantages of inflation targeting




  2. The target inflation range set by the Bank of England is ____.
    A) 1-4 percent
    B) 1-3 percent
    C) 2-4 percent
    D) 2-3 percent
    Answer: A
    Diff: 2 Type: MC Page Ref: 444
    Skill: Recall
    Objective List: 18.1 Assess the different types of monetary policy strategy




18.6 Tactics: Choosing the Policy Instrument




  1. Which of the following is not an operating instrument?
    A) Nonborrowed reserves
    B) Monetary base
    C) Overnight interest rate
    D) Bank rate
    Answer: D
    Diff: 1 Type: MC Page Ref: 454
    Skill: Recall
    Objective List: 18.1 Assess the different types of monetary policy strategy




  2. Which of the following is a potential operating instrument for the central bank?
    A) The monetary base
    B) The M1 money supply
    C) GDP
    D) The Bank rate
    Answer: A
    Diff: 1 Type: MC Page Ref: 476
    Skill: Recall
    Objective List: 18.1 Assess the different types of monetary policy strategy



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