Not sure about #5 since my notes say "cannot meet interest rate target and NBR target"
#1An important advantage of having a central bank focus on a monetary target is that....
-the target is one of the main goals for creating a central bank
-it leads to excessive output fluctuations
-it is easy to hold the bank accountable
-it will guarantee low unemployment?
#2The nominal anchor that is said to be implicit in the U.S. FR bank monetary policy is...
-high economic growth
-financial market stability
#3?If a central bank adopts inflation targeting for the conduct of its monetary policy,?a common concern is that this will lead to excessive..
-growth in M2
-financial market crises
-less effective open market operations
-economic output fluctuations
#4?If the FR Bank targets the federal funds rate as its policy instrument and the demand for reserves decreases, what can the FR Bank do to bring interest rates back to their target level?-sell securities
-lower?the discount rate
-switch to inflation targeting
#5?If the FR Bank is targeting non-borrowed reserves, it cannot also target the
-the federal funds rate
-the price of bonds
-the national debt level
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