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

question 81

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 of new printed Zimbabwean dollars.This action prompted a hyperinflation of almost 100,000 percent.This is an example of a lack of:

• A)a central bank independency.
• B)a central bank dependency.
• C)a central bank effectiveness in its monetary policy.
• D)central bank economists running the institution.

---

Definitions:

Inflated Request

A strategy where an initially large and unreasonable request is made with the expectation of settling for a lesser demand.

Door-in-the-face Technique

A persuasion strategy where an initial, large request is made expecting refusal, followed by a smaller, more reasonable request.

That's-not-all Technique

A sales technique where an initial offer is made more appealing by adding something extra before the decision is made.

Bargain

An agreement between two or more parties as to what each party will do for the other, often involving negotiation on terms and conditions.