Monetary Policy Tools of the European Central Bank
1) The European System of Central Banks signals the stance of its monetary policy by setting a target for the
A) federal funds rate.
B) overnight cash rate.
C) lombard rate.
D) reserve rate.
2) When the European System of Central Banks uses main refinancing operations, it is similar to the Federal Reserve using
A) dynamic open market operations.
B) defensive open market operations.
C) discount policy.
D) reserve requirements.
3) When the European System of Central Banks uses long term refinancing operations, it is similar to the Federal Reserve using
A) dynamic open market operations.
B) defensive open market operations.
C) discount policy.
D) reserve requirements.