Structure and Independence of Other Foreign Central Banks
1) On paper, the Bank of Canada has ________ instrument independence and ________ goal independence when compared to the Federal Reserve System.
A) less; less
B) less; more
C) more; less
D) more; more
2) 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.
3) While legislation enacted in 1998 granted the Bank of Japan new powers and greater autonomy, its critics contend that its independence is
A) limited by the Ministry of Finance”s veto power over a portion of its budget.
B) too great because it need not pursue a policy of price stability even if that is the popular will of the people.
C) too great since the Ministry of Finance no longer has veto power over the bank”s budget.
D) limited since the Ministry of Finance can dismiss senior bank officials.