All of the Following Are Characteristics of Independent Central Banks

question 11

Multiple Choice

All of the following are characteristics of independent central banks except:

• A)long terms for central bankers.
• B)the lack of an obligation to finance the national deficit.
• C)budgetary independence.
• D)the ability of executive branch to overrule central bank actions.

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Definitions:

Net 30 Credit Policy

A credit term indicating that payment is due in full 30 days after goods are delivered or services are performed.

Monthly Interest Rate

The interest rate applied each month on a loan or investment, often derived from the annual interest rate divided by twelve months.

Variable Cost

A variable cost is an expense that varies depending on a company's production volume; they rise as production increases and fall as production decreases.

NPV

An alternate expression for Net Present Value, it represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.