What Does the Bank of Japan Use as Its Daily

question 64

Multiple Choice

What does the Bank of Japan use as its daily operating target to conduct monetary policy?

• A) Monetary aggregates
• B) Non borrowed reserves
• C) The inter-bank market interest rate
• D) Reserve aggregates

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Definitions:

Exchange Gain/Loss

A financial result that occurs when the value of foreign currency transactions changes due to fluctuations in exchange rates between the initial transaction and settlement dates.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, used in its financial reporting.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Exchange Rates

The rate at which one currency can be exchanged for another currency, used in global transactions and currency conversion.