Which of the Following Statements About Central Bank Structure and Independence

question 82

Multiple Choice

Which of the following statements about central bank structure and independence are not 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) Only A and B of the above are false statements.

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