Which of the Following Is an Argument That Supports the Non-Independence

question 2

Multiple Choice

Which of the following is an argument that supports the non-independence of a country's central bank from its government?

• A)Independent monetary policy decision makers are not answerable to the voting public.
• B)Non-independence removes monetary policy from the political electoral cycle.
• C)Independent monetary policy is more likely to be inflationary.
• D)Non-independence allows the government to sell bonds to finance spending more efficiently.

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Definitions:

Retail Gift Stores

Commercial establishments focusing on selling various gift items including souvenirs, handmade crafts, and other unique products to customers.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or investment, based on a 360-day year.

Ordinary Simple Interest

A method for calculating the interest charge on a loan or investment based on the original principal, rate, and length of time, without compounding.

360-Day Year

A financial calculation assumption where the year is considered to have 360 days for simplifying interest related calculations.