The ECB Has the Following Mandates, EXCEPT

question 67

Multiple Choice

The ECB has the following mandates, EXCEPT:

• A) use interest rates to implement the policy of price stability.
• B) use monetary policy to fulfill objectives of the European Union community.
• C) not be under the jurisdiction of any other European Union institution.
• D) finance deficits of member countries when needed.

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Definitions:

Index Funds

Mutual funds or ETFs designed to replicate the performance of a specific market index, such as the S&P 500, by holding the same stocks in the same proportions.

Front-end Load

A charge or fee paid by an investor at the time of purchasing shares of a mutual fund or an investment, typically used to cover sales commissions.

Expense Ratio

The annual fee that all mutual funds and ETFs charge their shareholders, expressed as a percentage of the fund's average net assets.

NAV

Net Asset Value, the per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of shares outstanding.