Which of the Following Is Not an Advantage of Inflation

question 56

Multiple Choice

Which of the following is not an advantage of inflation targeting?

• A) There is simplicity and clarity of the target.
• B) Inflation targeting does not rely on a stable money-inflation relationship.
• C) There is an immediate signal on the achievement of the target.
• D) Inflation targeting reduces the effects of inflation shocks.

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Definitions:

Control Account

An account in the general ledger used to summarize the details of a subservient ledger.

Subsidiary Accounts

Detailed records that support and summarize information in a controlling account, often used for individual items or customers.

Cash Refund

An amount paid by the seller to the buyer for merchandise that is defective, is damaged during shipment, or does not meet the buyer’s expectations.

Cash Payments Journal

The special journal in which all cash payments are recorded.