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The Bank of Canada formally abandoned monetary targeting ____.
A) in November 1982
B) because of the uncertainty about the stability of M1
C) because of the uncertainty about monetary aggregates as reliable guides to monetary policy
D) All of the above.
Answer: D
Diff: 1 Type: MC Page Ref: 465
Skill: Applied
Objective List: 18.4 Outline Bank of Canada policy procedures from a historical perspective
During the 1982-1988 period, the Bank of Canada looked at a list of factors in order to
design and implement monetary policy. This list included ____.
A) the interest rate
B) the exchange rate
C) the money supply
D) All of the above.
E) Only A and B of the above.
Answer: D
Diff: 1 Type: MC Page Ref: 465
Skill: Applied
Objective List: 18.4 Outline Bank of Canada policy procedures from a historical perspective
During the 1982-1988 period, the Bank of Canada ____.
A) looked at a list of factors in order to design and implement monetary policy
B) switched its focus to a range of broad monetary aggregates, but no aggregate was found
suitable as a guide for conducting monetary policy
C) Both A and B of the above.
D) None of the above.
Answer: A
Diff: 1 Type: MC Page Ref: 465
Skill: Applied
Objective List: 18.4 Outline Bank of Canada policy procedures from a historical perspective
During the 1982-1988 period, the Bank of Canada used ____ as the operating target and
____ as the intermediate target.
A) the interest rate; the exchange rate
B) the monetary base; the interest rate
C) the short-term interest rate; the long-term interest rate
D) the interest rate; the money supply
Answer: A
Diff: 1 Type: MC Page Ref: 465
Skill: Applied
Objective List: 18.4 Outline Bank of Canada policy procedures from a historical perspective