Answer to Question #130723 in Macroeconomics for OBVIOUS

Question

Which one of the following statements on monetary policy is incorrect?
[1] Monetary policy in South Africa is implemented by the South African Reserve Bank
(SARB).
[2] The key instrument of monetary policy is the repurchase rate (repo rate).
[3] The SARB’s main objective is to control the growth of the money stock.
[4] The SARB pursues a formal inflation target, set by the Minister of Finance, in
conjunction with the SARB.

Answer 1

SARB states its key objective is to achieve and maintain price stability of the rand in the interest of balanced and sustainable economic growth within South Africa. More specifically, the bank aims to maintain the South African consumer price index to an inflation rate between 3% and 6% annually.

So, the statement [3] is incorrect.