The Reserve Bank of New Zealand Act Is Unusual in That

question 28

Multiple Choice

The Reserve Bank of New Zealand Act is unusual in that it only specifies

• A) inflation as a policy objective and because it empowers the legislature to remove the central bank governor if the objectives are not met.
• B) inflation as a policy objective and because it empowers the prime minister to remove the central bank governor if the objectives are not met.
• C) real output as a policy objective and because it empowers the legislature to remove the central bank governor if the objectives are not met.
• D) real output as a policy objective and because it empowers the prime minister to remove the central bank governor if the objectives are not met.
• E) money supply targeting as a policy objective and because it empowers the prime minister to remove the central bank governor if the objectives are not met.

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Definitions:

Continent-Continent Collision

This term refers to the process in which two continental plates collide, leading to the formation of mountain ranges.

Hot Spot

A hot spot is a volcanic region thought to be fed by underlying mantle that is anomalously hot compared with the surrounding mantle.

Uplift

The geological process of rising segments of the Earth's crust, contributing to mountain formation and changes in topography.

Sierra Nevada Batholith

A large mass of igneous rock, primarily granite, located in the Sierra Nevada range, formed by the cooling of magma beneath the Earth's surface.