In the European Union, which independent central bank is responsible for formulating and implementing monetary policy for the eurozone?
Answer and explanation
Correct answer: D. The European Central Bank
- Step 1: The European Central Bank (ECB, based in Frankfurt), together with national central banks of the Eurosystem, directs monetary policy and maintains price stability across the eurozone. Answer: The European Central Bank. Why not the others: The Bank of England oversees the British pound, the European Investment Bank provides development loans, and the World Bank is a global development institution.
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