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According to the Treaty on the Functioning of the European Union, which statement accurately describes the institutional framework and mandate of the European Central Bank regarding monetary policy and independence? A The Eurosystem, comprising the ECB and the national central banks of euro area Member States, conducts the Union’s monetary policy, and the ECB exercises its powers independently, with Union institutions and Member State governments legally bound to respect that independence. B The European System of Central Banks, comprising the ECB and all national central banks of the Union, directly formulates and implements monetary policy for all Member States, ensuring uniform exchange rate management across the entire EU. C Under the former Treaty on European Community, the ECB’s independence was explicitly subordinate to the Council’s authority over foreign-exchange operations, and national governments retained the exclusive right to hold foreign-exchange working balances. D The ECB’s mandate requires it to subordinate price stability to the general economic policies of the Union, and its independence is subject to the European Parliament’s co-legislative approval for all monetary decisions.
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