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:

Exchange Rate

The value of one currency expressed in terms of another currency, used in international trade and investment transactions.

Commodity

Basic goods used in commerce that are interchangeable with other goods of the same type.

Fixed Exchange Rate System

A currency system where the value of a currency is pegged to another currency, a basket of currencies, or a valuable commodity like gold.

Central Bank

The principal monetary authority of a country, which manages the country's currency, money supply, and interest rates.