One Reason for Having a Monetary Policy Framework Is

question 85

Multiple Choice

One reason for having a monetary policy framework is:

• A) it makes clear what specific goals the central bankers are pursuing.
• B) it provides leeway for central bankers to change their goals without communicating the change and disrupting financial markets.
• C) it provides central bankers the secrecy needed to perform their jobs effectively.
• D) it can make goal setting vague enough so that the central bankers can always claim success.

---

Definitions:

Full IFRS

The complete set of International Financial Reporting Standards that are globally accepted guidelines for preparing financial statements.

Private Company

A business entity owned by private individuals or entities and not traded publicly on the stock exchange, often characterized by closely held ownership.

Debt Financing

The method of raising capital through borrowing, typically by issuing bonds or taking out loans, which obligates the borrower to repay the borrowed amount plus interest.

No Debt

A situation where an individual or entity does not owe any financial obligations to external parties.