Which of the Following Is an Important Advantage of Discretionary

question 13

Multiple Choice

Which of the following is an important advantage of discretionary monetary policy?

• A)Influencing the political business cycle
• B)Flexibility to deal with changing economic conditions
• C)Limiting the opportunities for abuse of power by policymakers
• D)Avoiding the time inconsistency of policy problem

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Unrealised

Refers to profits or losses that have occurred on paper due to changes in value but have not been realized through an actual transaction.

Consolidation

The process of combining the financial statements of separate but related entities to present as those of a single economic entity.

NCI

Non-Controlling Interest, a minority shareholding in a subsidiary not owned by the parent company, reflecting those shareholders' claim on assets and earnings.