SARB's Kganyago Says Monetary Policy Stance Is 'Accommodative'

SARB's Kganyago Says Monetary Policy Stance Is 'Accommodative'

Assessment

Interactive Video

Business, Social Studies

University

Hard

Created by

Wayground Content

FREE Resource

The video discusses the relationship between interest rates, inflation, and monetary policy, emphasizing the need for lower inflation to allow for rate cuts. It explores the impact of inflation on businesses and consumption, the effects of power cuts on GDP, and the importance of government policy in restoring business confidence. The video also addresses the independence of the central bank and its interactions with the government.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is necessary for a central bank to have the space to lower interest rates?

Increased government spending

Lower inflation on a forward-looking basis

Higher inflation expectations

A recession

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might banks and construction companies not benefit from a rate cut?

They benefit more from government subsidies

They are unaffected by interest rates

Their costs grow faster than income

They prefer higher inflation

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do rotating power cuts affect the economy?

They reduce inflation

They increase potential GDP

They have no impact on growth

They lead to a lower potential GDP

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected potential output growth rate mentioned in the transcript?

0.5%

3.0%

1.5%

2.5%

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one key factor the central bank would like to address to support economic growth?

Restoration of business confidence

Increase in taxes

Reduction in government spending

Increase in inflation

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the central bank's stance on its independence?

Its mandate is protected by the constitution

It is undermined by political parties

It should be owned by private shareholders

It should be fully controlled by the government

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the central bank view shocks from fuel and exchange rates?

As reasons to change policy immediately

As opportunities for growth

As one-off shocks

As permanent changes