Which of the Following Statements About Central Bank Structure and Independence

question 7

Multiple Choice

Which of the following statements about central bank structure and independence are 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.

---

Definitions:

Depth Cue

Visual information that allows a person to judge the distance and 3D characteristics of an object, including factors such as lighting, perspective, and overlap.

Tall, Thin Glass

A container made of glass with a taller height compared to its diameter, often used for serving beverages.

Newly Hatched Chicks

describes chicks that have recently emerged from their eggs, marking the initial stage of their life outside the eggshell.

Depth

A measure of the distance from the surface or top to the bottom of something or the quality of being profound or intense.