the economics of money, banking, and financial markets

453 $

© 2014 Pearson Canada Inc.$

9. 
   

   The Eurosystem has a structure like that of the ____.
   A) Bank of Canada
   B) Federal Reserve System
   C) Bank of England
   D) Swiss National Bank
   Answer: B
   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

   
   


10. 
    

    The Maastricht Treaty which established the European Central Bank, defined price stability
    as an inflation rate equal to ____.
    A) It did not specify exactly.
    B) 0 percent
    C) 1 percent
    D) 2 percent
    Answer: A
    Diff: 2 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

    
    


11. 
    

    Which of the following are entities of the Eurosystem?
    A) The European Central Bank
    B) The central banks of the European Union countries that have adopted the euro
    C) The central banks of the euro area countries and of the European Union countries that have
    not yet adopted the euro
    D) Only A and B of the above
    Answer: D
    Diff: 2 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

    
    


12. 
    

    Which of the following are entities of the Eurosystem?
    A) The European Central Bank
    B) National finance ministries in each country
    C) The Governing Council of the European Central Bank
    D) Both A and C of the above
    Answer: D
    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