Which of the Following Are Tools of the Eurosystem

question 46

Multiple Choice

Which of the following are tools of the Eurosystem?

• A)open market operations
• B)a lending facility called the standing facility
• C)setting reserve requirements
• D)All of the above are tools of the Eurosystem.

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Definitions:

External Cost

A cost that is not borne by the parties to an economic transaction, often affecting third parties who did not choose to incur that cost.

Social Cost

The total cost to society as a whole due to an activity or decision, including both direct costs and indirect externalities.

Congested Highway

A highway or roadway that experiences traffic congestion due to a high volume of vehicles, often leading to slower speeds and longer travel times.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often arising from production or consumption of goods and services.