Criticisms of the ECB Center on Its Primary Focus on ______

question 59

Multiple Choice

Criticisms of the ECB center on its primary focus on ______ with less (but perhaps more needed) focus on _______.

• A) unemployment and GDP growth; exchange rates
• B) exchange rates; inflation problems
• C) price stability; unemployment and GDP growth
• D) political cohesiveness; price stability

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Definitions:

Financial Crisis

A situation where the value of financial institutions or assets drops rapidly, leading to a loss of confidence, insolvencies, and liquidity shortages.

Collateralized Debt Obligations

A type of structured asset-backed security (ABS) with multiple layers of debt obligations typically secured by a pool of loans or other assets.

Promissory Note

A financial instrument comprising a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Financial Asset

An intangible asset representing a claim on future benefits or returns, examples include stocks, bonds, and bank deposits.