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Regarding central bank independence, ____.
A) the Fed is more independent than the European Central Bank
B) the European Central Bank is more independent than the Fed
C) the trend in industrialized nations has been to reduce central bank independence
D) the Bank of England has the longest tradition of independence of any central bank in the
world
Answer: B
Diff: 2 Type: MC Page Ref: 370
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
Of the major central banks of the world, the most independent is ____.
A) the Federal Reserve System
B) the European Central Bank
C) the Bank of Canada
D) the Bank of England
Answer: B
Diff: 2 Type: MC Page Ref: 371
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
The oldest central bank, having been founded in 1694, is the ____.
A) Bank of England
B) Deutsche Bundesbank
C) Bank of Japan
D) Federal Reserve System
Answer: A
Diff: 1 Type: MC Page Ref: 371
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
Which of the following statements are true of the Bank of England?
A) The Bank of England was established in 1919.
B) The governor and four deputy governors comprise the monetary policy making body.
C) Until 1997, the decision to raise or lower interest rates resided not with the Bank of England
but with the chancellor of the Exchequer.
D) Both B and C of the above.
Answer: C
Diff: 3 Type: MC Page Ref: 371
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