Which of the Following Statements About Central Bank Structure and Independence

question 46

Multiple Choice

Which of the following statements about central bank structure and independence are NOT 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) A and B only

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Definitions:

Land Valuation

The process of determining the present worth of a piece of land based on its highest and best use, market conditions, and other factors.

Depreciable Cost Basis

The portion of the cost of an asset that can be deducted over time for tax purposes.

Personal-Use Property

Items owned for personal enjoyment or use, such as a residence or car, that typically do not qualify for tax deductions or depreciation.

FMV

Fair Market Value is an estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.