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The Central Banks of Australia, Canada and New Zealand Have

Question 78

Multiple Choice

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 a:


A) Target interest rate only
B) Target interest rate and a lending rate only
C) Target interest rate and a deposit rate only
D) Target interest rate, a lending rate, and a deposit rate

Correct Answer:

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