In General,if a Central Bank Chooses to Target the Money

Multiple Choice

In general,if a central bank chooses to target the money supply in its implementation of monetary policy,then

A) the interest rate is determined by monetary equilibrium,and cannot be precisely predicted because of possible shocks to money demand.
B) the interest rate can be more carefully controlled.
C) implementation of policy is more straightforward because money supply is more easily controlled than the interest rate.
D) the interest rate is determined by the Minister of Finance.
E) the implementation of policy is more straightforward because the central bank can control the process of deposit creation.