What is the main concern if a central bank pursues policy based on incorrect assumptions?
LGT Capital's Kumada Sees Fed Getting More Dovish

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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
It might cause unnecessary inflation.
It could lead to a financial crisis.
It could undermine the bank's credibility.
It may result in ineffective policy outcomes.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is the Fed's inflation target set at 2%?
To maintain a balance between growth and stability.
To ensure high economic growth.
To match the inflation rate of other countries.
To keep interest rates low.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What role does inflation play in an economy, according to the video?
It is a tool for controlling unemployment.
It serves as a lubricant for economic activities.
It acts as a barrier to economic growth.
It is a measure of economic success.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the critique of withdrawing financial support post-crisis?
It may cause a recession.
It could lead to increased inflation.
It might not address the root causes of instability.
It could result in higher interest rates.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
According to the video, what should monetary policy primarily focus on?
Achieving financial stability.
Regulating credit growth.
Controlling inflation rates.
Meeting stated economic goals.
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