A Prerequisite for Achieving the Objectives of Monetary Policy Is

question 72

Multiple Choice

A prerequisite for achieving the objectives of monetary policy is

• A)guaranteeing bank loans.
• B)maintaining an inflation rate of zero.
• C)creating an inflation target.
• D)creating financial stability in which financial markets function normally to allocate capital resources and risk.
• E)avoiding financial crisis.

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Definitions:

Capital Account Balance

Capital Account Balance is the net result of public and private international investments flowing in and out of a country, but it also refers to an individual's or company's financial statement showing the equity ownership and contributed capital.

Withdrawal

Withdrawal refers to the act of taking money out of a financial account, or the removal of participation or investment in a venture or agreement.

Net Income

A company's overall earnings post-deduction of every expense and tax from its total income.