Describe time inconsistency and explain how it can be avoided by a central bank setting monetary policy.
What will be an ideal response?
Time inconsistency exists when a central bank chooses a policy at one date, which leads people to make decisions based on that policy, which then causes the central bank to choose a different policy at a later date. A central bank can avoid time inconsistency by following a rule for monetary policy or ensuring that policymakers are committed to keeping inflation low in the long run.
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Making repairs and modifications to the system is known as:
a. systems implementation b. systems maintenance c. post-implementation review d. systems operation
The current ratio is
A) used to evaluate a company's liquidity and short-term debt paying ability. B) is a solvency measure that indicated the margin of safety of a noteholder or bondholder. C) calculated by dividing current liabilities by current assets. D) calculated by subtracting current liabilities from current assets.
The common law requires a note to contain the words "promissory note."
Indicate whether the statement is true or false
The fact that nonunion grievance systems that include a nonmanagerial decision maker tend to result in higher grievance filings rates than those that are decided by management suggests that:
A. Employees are more willing to bring forward complaints when the decisions are being made by nonmanagers than by managers. B. When nonmanagers make decisions it encourages employees to complain more. C. Nonmanager decision makers are more biased than managers. D. Managers are unfair in their grievance decisions.