Which of the Following Is a Potential Operating Instrument for the Central

question 23

Multiple Choice

Which of the following is a potential operating instrument for the central bank?

• A) The monetary base
• B) The M1 money supply
• C) GDP
• D) The Bank rate

---

Definitions:

Procurement Agreement

A contract between two parties where one agrees to supply goods or services to the other, often used in business and government transactions.

Voluntary Enforcement

The practice of adhering to rules or agreements based on personal or organizational choice rather than legal obligation.

Labor Standards

Regulations and policies establishing minimum requirements for working conditions, including wages, working hours, safety, and health protections.

Environmental Standards

Guidelines and criteria set to regulate activities and prevent harm to the environment, often involving emissions, waste management, and resource consumption.