Which of the Following Characteristics of a Central Bank Is

question 25

Multiple Choice

Which of the following characteristics of a central bank is expected to enhance monetary policy credibility?

• A) the central bankers short terms that coincide with the terms of the legislature.
• B) daily central bank actions are subject to the review and veto of the executive branch of the government.
• C) the central bank announces a numerical inflation target.
• D) the central bank is under the obligation to finance the national deficit.