Which of the Following Statements About America's Federal Monetary Policy

question 57

Multiple Choice

Which of the following statements about America's federal monetary policy is LEAST accurate?

• A) The officials most responsible for determining America's monetary policy are neither elected by the people nor accountable to its elected bodies.
• B) Every bank chartered by the federal government or by a state must belong to the Federal Reserve System.
• C) Banks that join the Federal Reserve receive access to a number of benefits, including the right to borrow money at attractive rates.
• D) The Federal Reserve controls the supply of money in the American economy, increasing it to combat recession, and shrinking it in response to inflationary trends.
• E) The Federal Reserve System has a complex structure that includes a seven-member board of governors and twelve regional banks.

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Definitions:

Freedom to Farm Act

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Farm Subsidies

Financial assistance provided by the government to farmers, intended to supplement their income and stabilize food prices.

Agricultural Act of 2014

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Crop Insurance

A risk management tool that protects agricultural producers against loss of their crops due to natural disasters, such as flood, hail, drought, or loss in revenue due to declines in the prices of agricultural commodities.