Which of the Following Techniques Adopted by the Central Banks

question 32

Multiple Choice

Which of the following techniques adopted by the central banks around the world have helped them to achieve credibility?

• A)Maintaining a low rate of inflation through tight monetary policies
• B)Publicly announcing a target rate of inflation
• C)Refusing to bail out the commercial banks at times of failure
• D)Supporting all government budget deficits through deficit financing
• E)Reducing unemployment amidst high inflation

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