the economics of money, banking, and financial markets

452 $

© 2014 Pearson Canada Inc.$

5. 
   

   According to the authors of your textbook, the Federal Reserve is ____.
   A) remarkably free of the political pressures that influence other government agencies
   B) more responsive to the political pressures that influence other government agencies
   C) constrained in its policy making by the congressional threat to reduce Fed independence
   D) Both A and C of the above.
   Answer: A
   Diff: 3 Type: MC Page Ref: 368
   Skill: Recall
   Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
   specify the arguments for and against an independent central bank

   
   


6. 
   

   According to the author of your textbook, the Federal Reserve is ____.
   A) remarkably free of the political pressures that influence other government agencies
   B) more responsive to the political pressures that influence other government agencies
   C) probably somewhat constrained in its policy making by the congressional threat to reduce Fed
   independence
   D) Both A and C of the above.
   Answer: D
   Diff: 3 Type: MC Page Ref: 368
   Skill: Recall
   Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
   specify the arguments for and against an independent central bank

   
   


7. 
   

   The European Central Bank is located in ____.
   A) Frankfurt
   B) London
   C) Paris
   D) Rome
   Answer: A
   Diff: 1 Type: MC Page Ref: 369
   Skill: Recall
   Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
   specify the arguments for and against an independent central bank

   
   


8. 
   

   The Executive Board of the European Central Bank ____.
   A) consists of the European Central Bank's president, vice president, and four other members
   B) is responsible for the business of the European Central Bank
   C) is responsible for the implementation of monetary policy in accordance with the guidelines set
   by the Governing Council
   D) All of the above.
   Answer: D
   Diff: 3 Type: MC Page Ref: 369
   Skill: Recall
   Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
   specify the arguments for and against an independent central bank