Which of the Following Characteristics of a Central Bank Is

question 58

Multiple Choice

Which of the following characteristics of a central bank is expected to enhance monetary policy credibility?

• A)The central bankers'short terms that coincide with the terms of the legislature
• B)Daily central bank actions that are subject to the review and veto of the executive branch of the government
• C)The central bank announcing a numerical inflation target
• D)The central bank's obligation to finance the national deficit

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Definitions:

Practicality

The extent to which something can be applied or used in a real-world setting.

Painstakingly

With great care and thoroughness, paying close attention to every detail.

Inappropriate

Unsuitable or not fitting the context, often referring to behavior, language, or actions that are not proper or acceptable in a given situation.

Valid Observation

Observations that are reliable and accurately represent the phenomenon being studied.