Which of the Following Statements About Central Bank Structure and Independence

question 7

Multiple Choice

Which of the following statements about central bank structure and independence are true?

• A) In recent years, with the exception of the Bank of England and the Bank of Japan, most countries have reduced the independence of their central banks, subjecting them to greater democratic control.
• B) Before the Bank of England was granted greater independence, the Federal Reserve was the most independent of the world's central banks.
• C) Both theory and experience suggest that more independent central banks produce better monetary policy.
• D) While the European Central Bank is independent, it is not as independent as the Federal Reserve.

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Definitions:

Output

The final product or result that comes from a system, process, or activity.

Peripheral Nervous System

The part of the nervous system that lies outside the central nervous system, consisting of nerves and ganglia, and connects the CNS to limbs and organs.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out neural signals.

Autonomic Nervous System

Part of the peripheral nervous system that controls involuntary bodily functions such as heart rate, digestion, and respiratory rate.