An Example of an Arrangement That Helps to Enforce Commitment

question 28

Multiple Choice

An example of an arrangement that helps to enforce commitment by a central bank is

• A) the Bank of Canada's interest rate target.
• B) New Zealand's Policy Targets Agreement.
• C) an independent central bank.
• D) deposit insurance.
• E) the lender of last resort.

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Definitions:

Valence

The intrinsic attractiveness or aversiveness of an event, object, or situation.

Acceptability

The degree to which a product, idea, or behavior is perceived as suitable or appropriate by others.

Learning Goal Orientation

A mindset focused on developing competence and mastering new skills, as opposed to proving competence or comparing oneself to others.

Performance-Prove Orientation

A focus or attitude where individuals are driven to demonstrate their competencies and skills in order to be positively evaluated by others.