The Structure of the European Central Bank

question 42

Multiple Choice

The structure of the European Central Bank

• A) does not allow larger countries to dominate.
• B) provides for equal representation among member countries.
• C) removes monetary policy control from members' central banks.
• D) provides for secrecy of the opinions of individual representatives.
• E) provides all of these.

Discuss examples of menu costs and how they relate to inflation.

Understand the reasons for holding U.S. currency abroad.

Comprehend the functions of money, including as a unit of account, medium of exchange, and store of value.

Recognize the insufficiency of legal tender laws for currency usage and the importance of general acceptance.

---

Definitions:

Proactive Interference

The phenomenon where previously learned information interferes with the recall of newly learned information.

Nonsense Syllables

Sequences of letters without meaning, used in memory and learning experiments to study the mental processes involved in remembering.

Ebbinghaus

Hermann Ebbinghaus, a psychologist known for his pioneering studies on memory and the forgetting curve, illustrating how memory retention diminishes over time.

Cued Recall Task

A memory task where a participant is given prompts or cues to aid the retrieval of a specific piece of information from memory.