Central Banks That Have a Hierarchical Mandate with Inflation Targeting

question 40

Multiple Choice

Central banks that have a hierarchical mandate with inflation targeting basically are saying:

• A)Hitting the inflation target is the first priority after all other stated objectives are reached
• B)Hitting the inflation target is the only objective
• C)The inflation target is the second most important goal after economic growth, which is always the most important goal for monetary policymakers
• D)Hitting the inflation target comes first, everything else comes second

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Definitions:

Behaviour

The way in which one acts or conducts oneself, especially towards others.

Attitude

An inclination of the mind demonstrated through appraising a certain entity with a measure of approval or disapproval.

Theory of Planned Behaviour

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place.

Sporting Attitude

An approach or mindset that embraces fairness, respect, and adherence to rules within competitive activities.