The ECB is prohibited from

Question

Quizplus · Accepted Answer

The ECB is not allowed to lend directly to national governments or purchase government debt directly from the government as doing so may lead to a conflict of interest and compromise the independence of the central bank. Instead, it operates through open market operations, where it buys and sells government bonds on the secondary market. B, C and D are not true as the ECB can own government debt, accept deposits from EU countries, and pay interest on deposits, respectively.

The ECB Is Prohibited from