Inflation Targeting Usually Increases the Uncertainty About the Course of Action

question 54

True/False

Inflation targeting usually increases the uncertainty about the course of action of central banks, as perceived by the general public.

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Definitions:

Credit Period

The length of time for which credit is extended. If the credit period is lengthened, then sales will generally increase, as will accounts receivable. This will increase the firm’s financing needs and possibly increase bad debt losses. A shortening of the credit period will have the opposite effect.

Credit Search

A process used by lenders to review an individual's or business's credit history before granting loans or credit.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Accounts Receivable

Funds that a company is entitled to receive from its customers for products or services that have been provided but not yet compensated for.