Q (B) Which of the following statements about central bank objectives are​ true?   A. Central banks can have several​ objectives, but their actions need to provide a​ “nominal anchor” for the economy   B. All statements are true   C. A strict inflation target is a way to provide a​ “nominal anchor” for the economy   D. In​ principle, one of the goals of a central bank could be to slow down climate change

dis finance

To fight inflation, another monetary policy tool the Fed could use is to change the reserve requirement. With the reserve requirements, and as the result, the equilibrium federal goal of curbing inflation, the Fed should funds rate will A increase; drop OB. decrease; rise C. decrease; drop D, increase; rise

3. How do the central banks implement expansionary monetary policy using monetary policy tools? (Explain with examples) || 25 hp

Question 1 (ILOs: A1, A2, B1, C1, C2, D1, D4) a. Some countries do not have well-established market for debt securities or equity securities. Why do you think this can limit the development of the country, business expansion, and growth in national income in these countries? b. When economic crises in countries are due to a weak economy, local interest rates tend to be very low. However, if the crisis is caused by an unusually high rate of inflation, the interest rate tends to be very high. Explain why?

Monetary policy in Australia is implemented by the Reserve Bank, and currently is principally directed towards:   A: affecting the level of short-term interest rates B: effecting a reduction in the current account deficit C: affecting the level of growth in the money supply

6. Central bank independence Which of the following is an argument for keeping central banks independent? The monetary policy conducted by the Federal Reserve is nontransparent O That the Federal Reserve is overly secretive That the Federal Reserve wields excessive control over the U.S. dollar O That monetary policy is subject to a time-inconsistency problem

Why do governments intervene in the foreign exchange market?   Check all that apply:   To maintain exchange rate boundaries   To reduce fear in financial markets To smooth out the business cycle To smooth out exchange rate movements To earn a profit for the government

(a) Suppose that the economy of Microland is expanding rabidly. Due to this rapid expansion, the Federal Reserve Bank is pursuing a contractionary monetary policy. Draw clearly labeled graphs for each market (Money market, Goods Market and Investment) to show the effects of this policy on the equilibrium interest rate, investment and output. (b) Suppose that the economy of Macroland is expanding rabidly. Due to this rapid expansion, the Federal Government is pursuing a contractionary fiscal policy. Draw clearly labeled graphs for each market (Money market, Goods Market and Investment) to show the effects of this policy on the equilibrium interest rate, investment and output. Is there any crowding-out due to the contractionary fiscal policy?

D3) Finance Use covered interest rate parity (CIP) to show that a fixed exchange rate and free capital flows imply that a central bank cannot set the interest rate independently from the interest rate set by the reference currency's central bank.