Monetary policy

What does OCR stand for?

• Over consumed resources

• Official Cash Rate

• Official Cat Rate

• Official Cash Rat

What does the PTA stand for?

• Parent Teachers Act

• Policy Targets Act

• Policy Targets Agreement

• Purposeful Targeting Agreement

What rate does the Policy Targets Agreement set out to keep inflation to in the medium term ?

• 0-3%

• 2-6%

• 4-5%

• 1-3%

An interest rate set by the Reserve bank to implement monetary policy, so as to maintain price stability

• Official Cash Rate

• Policy Targets Agreement

• Aggregate Demand

• Open Market Operations

When the RBNZ decreases the OCR and New Zealand banks decrease interest rates

• Loose Monetary Policy

• Tight Monetary Policy

When the RBNZ increases the OCR and New Zealand banks increase interest rates.

• Loose Monetary Policy

• Tight Monetary POlicy

An increase in the general price level over a period of time

• Inflation

• Deflation

• Disinflation

• Hyperinflation

A sustained decrease in the general price level over a period of time.

• Inflation

• Deflation

• Disinflation

• Hyperinflation

A decrease in the rate of inflation

• Inflation

• Deflation

• Disinflation

• Hyperinflation

The Reserve Bank’s responsibilities are set out in the Policy Targets Agreement

this is a contract between......

• The Prime Minister and Minister of Finance

• The Prime Minister and Governor of RBNZ

• The Minister of Finance and Governor of RBNZ