In 2016,the Bank of Japan

question 80

Multiple Choice

In 2016,the Bank of Japan

• A) started paying interest on bank reserves in an effort to lower inflation.
• B) raised the target interest rate to double digits for the first time in over 10 years.
• C) implemented a reverse quantitative easing program, where it sold long-term Treasury securities and mortgage-backed securities to raise long-term interest rates.
• D) instituted a negative interest rate on deposits it receives from Japanese banks, effectively requiring banks to pay the Bank of Japan for keeping their deposits.

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Definitions:

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up.

Statement Of Comprehensive Income

A financial statement that presents a company's total income, including items that are not included in the net income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, a key indicator of a company's profitability.

Interest Expense

The financial cost experienced by an entity over a duration for utilizing borrowed money.