Which of the following statements is not a function of central bank independence?
A) The central bank can set monetary policy free from the interference by the government.
B) The central bank is free to decide what economic objective to pursue.
C) The central bank is free to decide how to set monetary policy in pursuit of the objective.
D) Central bank decisions can be reversed by other branches of the government.
E) Central bank decisions cannot be reversed by other branches of the government.

Question

Quizplus · Accepted Answer

The statement "Central bank decisions can be reversed by other branches of the government" is not a function of central bank independence. In fact, central bank independence means that the central bank's decisions cannot be easily reversed by other branches of the government, as this could undermine the effectiveness of its policies.

Which of the Following Statements Is Not a Function of Central