In2015, the Bank of Japan announced it would begin buyingexchange-traded funds(ETFs) provided the stocks included in the
Question:
In2015, the Bank of Japan announced it would begin buyingexchange-traded funds(ETFs) provided the stocks included in the funds had been issued by firms that were "proactively making investments in physical and human capital." The Japanese government had been urging firms to increase their investment spending. An editorial in the Wall Street Journal observedthat: "Using the centralbank's powers to promote thegovernment's political goals also runs the risk of misallocatingresources, which would harm growth. It sets a precedent that could undermine thebank's independence."
Source: "The Bank of Japan Lays an Egg," Wall Street Journal, December20, 2015.
Why might these actions by the Bank of Japan undermine itsindependence?
A.
These actions could not be taken if the Bank of Japan were independent of the government.
B.
These actions infringed on fiscalpolicy, usually the domain of elected officials.
C.
These actions restricted the Bank of Japan to fiscal policy.
D.
These actions could only be taken with the approval ofJapan's government.