The central banks of Australia, Canada and New Zealand have eliminated reserve requirements and conduct monetary policy through a "channel" or "corridor" system that involves setting:

Question

Quizplus · Accepted Answer

The correct choice is D because these central banks conduct monetary policy through a channel or corridor system that involves setting a target interest rate, a lending rate, and a deposit rate. This system allows the central banks to maintain control over short-term interest rates and the money supply without relying on reserve requirements.

The Central Banks of Australia, Canada and New Zealand Have