A Central Bank That Is Explicit About Its Goals and Plans

question 47

Multiple Choice

A central bank that is explicit about its goals and plans is said to be

• A)obvious.
• B)transparent.
• C)translucent.
• D)opaque.

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Definitions:

Implied Agency

A relationship formed by the actions of the parties that indicates an agency relationship, even without a formal agreement.

Apparent Agency

An agency relationship created by operation of law when one party, by her actions, causes a third party to believe someone is her agent even though that person actually has no authority to act as her agent. Also called agency by estoppel.

Ratification Agency

The process by which a principal approves and accepts the acts of their agent that were done without proper authority or beyond the scope of their authority.

Implied Authority

Power not explicitly granted to an agent but necessary to carry out the agent's duties effectively.