What is the difference between the European System of Central Banks and the Euro system?
What will be an ideal response?
The European System of Central Banks is made up of the European Central Bank (ECB), located in Frankfurt, Germany and the National Central Banks (NCBs) in the twenty-eight countries of the European Union, as of early 2017. The Euro system is made up of the ECB and the NCBs of the countries that have agreed to share a common currency, the euro, and a common monetary policy.
You might also like to view...
Which of the following is a characteristic of a market where a price floor is in place?
A. The market quantity demanded exceeds the market quantity supplied. B. Fewer regulations are needed since the government sets the price. C. Fewer units are purchased than would be the case without the price floor. D. A smaller number of sellers than in markets without price floors.
Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
a. A decrease in domestic interest rates b. An increase in foreign interest rates c. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices d. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation
Which of the following statements about modern macroeconomic theory is most accurate?
a. Keynes' ideas help us understand movements in output around its long-run trend, while the Classical model is more useful in explaining the long-run trend itself. b. The classical model helps us understand movements in output around its long-run trend, while the short-run macro model is more useful in explaining the long-run trend itself. c. Both classical and short-run macro models help us understand movements in output around its long-run trend, but neither model is effective at explaining the long-run trend itself. d. Neither the classical nor the short-run macro model helps us understand movements in output around its long-run trend, but both are useful in explaining the long-run trend itself. e. Only the short-run macro model is useful in understanding movements in output around its long-run trend, and in explaining the long-run trend itself.
Checkable deposits include:
A. both large and small-denominated time deposits. B. the deposits of banks and thrifts on which checks can be written. C. only the checkable deposits of commercial banks. D. only the checkable deposits of thrift institutions.