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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
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
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
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