Which of the Following Best Explains Why Independent Central Banks

question 147

Multiple Choice

Which of the following best explains why independent central banks need to be held accountable?

• A)Central banks are used to serving politicians.
• B)They would not otherwise be able to pursue the goal of price stability.
• C)Central bank independence can be taken too far.
• D)Central banks are prone to causing political business cycles.
• E)Central banks do not understand political issues.

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Definitions:

Continuity

Refers to the unbroken and consistent existence or operation of something over a period of time.

Proximity

The physical or psychological closeness between people or objects, often influencing relationships and interactions.

Closure

A psychological term denoting the need for resolution or an end to a particular emotional or relational issue.

Depth Perception

The visual ability to perceive the world in three dimensions (3D) and the distance of an object.