Since 1978, the Bank of Japan has used an interest rate as its daily operating target ________.

Question

Quizplus · Accepted Answer

The Bank of Japan has successfully used an interest rate as its daily operating target since 1978, suggesting that an interest rate operating target is not necessarily a barrier to successful monetary policy. This option is the only one that accurately reflects the information provided in the question. Option A is incorrect because there is no information that suggests that interest rate smoothing is inconsistent with reducing inflation, and option B is incorrect because the volatility of money growth in Japan is not related to the Bank of Japan's use of an interest rate as its daily operating target.

Since 1978, the Bank of Japan Has Used an Interest