71. The most likely benefit of adopting an exchange rate target is:
freedom to pursue redistributive fiscal policy.
freedom to set interest rates according to domestic conditions.
to “import” the inflation experience of the economy whose currency is being
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72. Which of the following is least likely a feature of an inflation-targeting
A commitment to transparency.
A central bank which is closely aligned with the government.
A clear medium-term inflation target.
73. In an effort to influence the economy, a central bank conducted open market activities by buying government bonds. This implies that the central bank is most likely attempting to:
expand the economy by increasing bank reserves.
contract the economy through a higher policy interest rate.
expand the economy through a higher policy interest rate.
74. Which of the following actions on the part of the central bank is most consistent with a contractionary monetary policy?
Decreasing reserve requirements.
Buying securities in the open market.
Selling securities in the open market.
75. Monetary policy is most likely to be contractionary for:
Option A in the above table.
Option B in the above table.
Option C in the above table.
UGC NET PAPER 1
UGC NET Management
UGC NET COMPUTER SCIENCE
UGC NET COMMERCE
GATE COMPUTER SCIENCE
CFA Level 1
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