Which of the Following Statements About Central Bank Structure and Independence

question 62

Multiple Choice

Which of the following statements about central bank structure and independence is 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:

Individual Differences

Variations among people in their thinking, emotion, personality, and behavior.

Visibility

The degree to which actions, decisions, or processes are observable, transparent, and open to scrutiny by outside parties.

Centrality

The importance or influence of a node within a network, indicating how vital a point is within the structure.

Network Structure

The arrangement or organization of elements within a network, defining how they are interconnected.