Which of the following statements comparing the European System of Central Banks and the Federal Reserve System is TRUE?

(a) Just like the Federal Reserve System, monetary operations are centralized in the European System of Central Banks with the European Central Bank.

(b) The European Central Bank has similar power over the National Central Banks when compared to the level of power the Board of Governors has over the Federal Reserve Banks. (c) The budgets of the Federal Reserve Banks are controlled by the Board of Governors, while the National Central Banks control their own budgets and the budget of the European Central Bank.

(d) None of the above.

(b) The European Central Bank has similar power over the National Central Banks when compared to the level of power the Board of Governors has over the Federal Reserve Banks.

Explanation:

"Among the responsibilities of the Board of Governors are to guide monetary policy action, to analyze domestic and international economic and financial conditions, and to lead committees that study current issues, such as consumer banking laws and electronic commerce."

"The European Central Bank (ECB) manages the euro and frames and implements EU economic & monetary policy. Its main aim is to keep prices stable, thereby supporting economic growth and job creation."

References:

FederalReserve. Gov. "The Structure and Functions of the Federal Reserve System." The Structure and Functions of the Federal Reserve System, 2019

Europa. eu. "European Central Bank (ECB)." European Union, 9 Oct. 2019