The ECB Turns 25: Crises and Challenges

The European Central Bank (ECB), founded in 1998, was tasked with maintaining inflation below 2%. Over the years, it has faced numerous challenges, including the financial crisis, Eurozone debt crisis, and the COVID-19 pandemic. The ECB has adapted by changing mandates, implementing negative interest rates, and launching bond-buying programs. Despite these efforts, it now faces new challenges as it raises rates at an unprecedented pace to combat inflation.

When was the European Central Bank founded?

• June 1st, 1998

• January 1st, 1998

• January 1st, 1999

• June 1st, 1999

What was the primary mandate of the ECB at its inception?

• Stabilize the euro exchange rate

• Support economic growth

• Maintain inflation below 2%

• Achieve full employment

Who was the ECB's second president?

• Wim Duisenberg

• Christine Lagarde

• Mario Draghi

• Jean Claude Trichet

What significant action did the ECB take in 2014?

• Raised interest rates

• Introduced a new currency design

• Launched the euro currency

• Implemented negative interest rates

How much was the emergency program introduced during the pandemic?

• €1.85 trillion

• €2 trillion

• €1 trillion

• €1.5 trillion