Which institution sets the monetary policy of the euro area, and where is it based?
Answer and explanation
Correct answer: C. The European Central Bank, based in Frankfurt
- Step 1: The ECB sets the key interest rates for the euro area. Step 2. It is based in Frankfurt. Answer: the ECB in Frankfurt. Why not the others: the Commission proposes laws, the Banque de France is part of the system, and the Parliament legislates.
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