Having one central bank responsible for managing the common currency and replacing the national monetary authority provides benefits that include all of the following, EXCEPT:
A) independence and the ability to resist political pressure.
B) better performance in keeping inflation stable with no large swings in unemployment.
C) the ability to tailor the supply of money for a variety of economic conditions in the member states.
D) provision of a stable nominal anchor.
Answer: C) the ability to tailor the supply of money for a variety of economic conditions in the member states.
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The larger the leverage ratio of a bank,
A) the greater the proportion of its deposits that are fully insured. B) the smaller the proportion of its deposits that are fully insured. C) the thicker its cushion against failure. D) the thinner its cushion against failure.