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© 2014 Pearson Canada Inc.#
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
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
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
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