In General,if a Central Bank Chooses to Target the Interest

question 12

Multiple Choice

In general,if a central bank chooses to target the interest rate in its implementation of monetary policy,then

• A)it is more difficult to communicate this policy to the public than a change in money supply.
• B)the central bank can more easily control the process of deposit creation by the commercial banks.
• C)the money supply is determined by the Minister of Finance.
• D)the implementation of policy is more straightforward because the central bank knows precisely the slope and position of the money demand curve.
• E)it conducts the necessary open-market operations to accommodate the resulting change in money demand.

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Definitions:

Males

The sex that is characterized by the production of small mobile sperm, typically having XY chromosomes in mammals.

Females

Refers to the sex or gender that is typically characterized by the ability to produce ova or eggs, and in mammalian species, usually possesses two X chromosomes.

Homosexual Males

Men who are emotionally, romantically, or sexually attracted to other men.

Heterosexual Males

Men who are sexually attracted to women.