Questions and Answers
Which of the following is a key feature of inflation targeting as a monetary policy framework?
Committing to achieving a medium-term inflation target
How does inflation targeting aim to increase transparency in central bank policy?
By regularly communicating the central bank's policy objectives
What is the primary focus of central banks under an inflation targeting framework?
Maintaining price stability
Which of the following is a policy tool used by central banks to control the money supply?
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How does high inflation affect economic growth according to the passage?
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Which central bank policy tool is used to increase the cost of borrowing and reduce the money supply?
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What is the primary function of a central bank?
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Which of the following is NOT a common tool used by central banks to implement monetary policy?
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What is the primary goal of monetary policy according to the text?
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Why is central bank independence considered important for effective monetary policy?
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What is the primary goal of most central banks' monetary policy?
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What is the relationship between expansionary monetary policy and interest rates according to the text?
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Which of the following is NOT a common tool used by central banks to control inflation?
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What is the role of the central bank as a 'lender of last resort' according to the text?
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What is one of the other goals of monetary policy besides price stability?
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What is the short-run trade-off described in the text between price stability and other goals of monetary policy?
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What is one of the functions of the Banking Regulation and Supervision Agency in Turkey?
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