the economics of money, banking, and financial markets

636 #

© 2014 Pearson Canada Inc.#

16. 
    

    The seignorage for a government is greater for ____ than for ____.
    A) dollarization; a currency board
    B) dollarization; exchange-rate targeting
    C) dollarization; monetary targeting
    D) dollarization; inflation targeting
    E) exchange-rate targeting; dollarization
    Answer: E
    Diff: 1 Type: MC Page Ref: 519
    Skill: Recall
    Objective List: 20.3 Summarize the arguments for and against capital controls

    
    


17. 
    

    Exchange-rate targeting is not an option for the U.S. because ____.
    A) the U.S. is already dollarized
    B) the U.S. is too large
    C) the Fed has adopted a monetary targeting strategy
    D) the Fed has adopted an inflation targeting strategy
    Answer: B
    Diff: 1 Type: MC Page Ref: 520
    Skill: Applied
    Objective List: 20.3 Summarize the arguments for and against capital controls

    
    


18. 
    

    The monetary policy strategy that provides an automatic rule for the conduct of monetary
    policy is ____.
    A) exchange-rate targeting
    B) monetary targeting
    C) inflation targeting
    D) the implicit nominal anchor
    Answer: A
    Diff: 1 Type: MC Page Ref: 519
    Skill: Recall
    Objective List: 20.3 Summarize the arguments for and against capital controls

    
    


19. 
    

    The monetary policy strategy that does not allow the policy to focus on domestic
    considerations is ____.
    A) exchange-rate targeting
    B) monetary targeting
    C) inflation targeting
    D) the implicit nominal anchor
    Answer: A
    Diff: 1 Type: MC Page Ref: 519
    Skill: Recall
    Objective List: 20.3 Summarize the arguments for and against capital controls