When Zimbabwe Needed to Finance the War Against Congo, the Government

question 129

Multiple Choice

When Zimbabwe needed to finance the war against Congo, the government issued bonds and forced the Central Bank to buy those bonds in exchange for newly-printed Zimbabwean dollars. This action prompted a hyperinflation of almost 100,000 percent. This is an example of a lack of:

• A)central bank independence.
• B)central bank dependence.
• C)central bank effectiveness in its monetary policy.
• D)central bank economists running the institution.

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Definitions:

Negative Information

Facts, data, or details that have unfavorable implications or induce perceptions that may not be positive about a subject.

Human Thoughts

The mental processes and cognitive activities associated with thinking, reasoning, and understanding.

Motivation

Refers to the factors or stimuli that encourage individuals to pursue and achieve their goals with enthusiasm and persistence.

Theoretical Foundation

The fundamental principles and assumptions that form the basis for a particular theory or field of study.