The Taylor Rule Is an Example Of

question 281

Multiple Choice

The Taylor rule is an example of:

• A) inflation targeting.
• B) monetary targeting.
• C) unemployment targeting.
• D) None of the answers is correct.

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Definitions:

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, involving the collection and processing of cheque payments at a secure location.

Collection Time

The average period a company takes to collect payments owed by its customers.

Lockbox Fee

A charge by banks for the service of collecting payments through a secured post office box and processing them for the account holder.

Money Market Securities

Short-term financial instruments, typically with high liquidity and very low risk, used by individuals and corporations to manage cash.