the economics of money, banking, and financial markets

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26.4 Approaches to Establishing Central Bank Credibility

1. 
   

   Approaches to establishing central bank credibility include ____.
   A) continued success at keeping inflation under control
   B) central bank independence
   C) appointment of a more conservative central banker
   D) all of the above
   Answer: D
   Diff: 2 Type: MC Page Ref: 633
   Skill: Recall
   Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
   discretion policy debates

   
   


2. 
   

   Approaches to establishing central bank credibility include ____.
   A) continued success at keeping inflation under control
   B) inflation targeting
   C) exchange rate targeting
   D) all of the above
   Answer: D
   Diff: 2 Type: MC Page Ref: 633
   Skill: Recall
   Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
   discretion policy debates

   
   


3. 
   

   Approaches to establishing central bank credibility include ____.
   A) inflation targeting
   B) exchange rate targeting
   C) central bank independence
   D) appointment of a more conservative central banker
   E) all of the above
   Answer: E
   Diff: 2 Type: MC Page Ref: 633
   Skill: Recall
   Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
   discretion policy debates

   
   


4. 
   

   The notion of hiring central bankers who are "conservative" and have a strong aversion to
   inflation was introduced by ____.
   A) Kenneth Galbraith
   B) Ben Bernanke
   C) Gerald Bouey
   D) Kenneth Rogoff
   Answer: A
   Diff: 2 Type: MC Page Ref: 633
   Skill: Recall
   Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
   discretion policy debates