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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
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
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
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