a. "The policy instrument must be observable andmeasurable, it must be controllable by the CentralBank, and it must have a predictable effect on goals".Explain this statement.

Policy instrument refers to the techniques that are used by the authorities of government or the…

Answered: 'The policy instrument must be…

'The policy instrument must be observable and measurable, it must be controllable by the Centra Bank, and it must have a predictable effect on go-

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 22CYBK

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a. "The policy instrument must be observable and
measurable, it must be controllable by the Central
Bank, and it must have a predictable effect on goals".
Explain this statement.

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