Under ERM 2 Rules, the National Central Bank of an EU

question 41

Multiple Choice

Under ERM 2 rules, the national central bank of an EU member with its own currency can suspend euro intervention operations

• A) if there is a civil war.
• B) if they result in money supply changes that threaten to destabilize the domestic price level.
• C) if there is a current account deficit.
• D) if there is a current account surplus.
• E) if they result in a weakened current account.

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Definitions:

Limited Liability Company

A business entity model combining the benefit of limited liability from a corporation with the direct tax advantages of a partnership or sole proprietorship.

Breaching

The act of violating a law, duty, other form of agreement, or trust.

Taxed As A Corporation

Refers to a taxation status where a business entity is treated as a corporation for tax purposes, subjecting it to corporate income tax rates and regulations.

Limited Liability Company

An enterprise organization that fuses the limited liability benefit of corporations with the pass-through taxation system characteristic of sole proprietorships or partnerships.