Which of the Following Statements About the Structure of the Fed

question 167

Multiple Choice

Which of the following statements about the structure of the Fed is an advantage from the perspective of conducting monetary policy?

• A) The two policymaking bodies of the Fed are deliberately large to allow for different viewpoints and they work very closely with other political institutions.
• B) The two policymaking bodies of the Fed are deliberately large to allow for different viewpoints and they work relatively independently of other political institutions.
• C) The two policymaking bodies of the Fed are small to allow deliberations in private and they work relatively independently of other political institutions.
• D) The two policymaking bodies of the Fed are small to allow members to work closely with other political institutions.

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Definitions:

Standard Error

A statistic that measures the accuracy with which a sample distribution represents a population by using the standard deviation.

Confidence Interval

An estimated range of values calculated from the statistics of observed data, indicating where a true parameter of a population is likely to exist with a specified level of certainty.

Sample

A subset of individuals or events from a larger population used to conduct statistical analysis.

Mean

The average value of a set of numbers, calculated by dividing the sum of all numbers in the set by the quantity of numbers.