The ECB, Like the U

question 141

Multiple Choice

The ECB, like the U.S. Federal Reserve, is ______, and unlike the U.S. Federal Reserve, is not ______.

• A) independent; a lender of last resort
• B) subject to scrutiny by the legislature; able to lend to large corporations
• C) dependent on congressional approval for its policies; committed to price stability
• D) able to lend to member governments; able to lend directly to banks

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Definitions:

Property, Plant, and Equipment

Long-term assets used in the operations of a business, not intended for sale.

Insurance

A financial product that provides protection against financial losses from specific risks, such as accidents, theft, or natural disasters.

Depreciation

A method to allocate the cost of a tangible asset over its useful life.

Utilities

Services such as electricity, gas, water, and sewer that are used by businesses and households, often considered basic necessities.