The Likelihood That the Fed Will Implement a Change That

question 3

Multiple Choice

The likelihood that the Fed will implement a change that will seriously harm the economy is minimized by the fact that:

• A) only bright, well-intentioned people are appointed to key roles at the Fed.
• B) Congress can remove the Chairman of the Fed at any time.
• C) the Board of Governors ultimately must answer to the U.S. President since he can replace them.
• D) there is decision making by committee.

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Definitions:

Flexible Statute

A law designed to be adaptable and able to accommodate various situations as they arise.

Liquidated Damages Provision

A contractual clause that determines the amount of damages payable if one of the parties breaches the agreement.

Penalty Provision

A clause in a contract or law that specifies a penalty for non-compliance or violation of its terms.

Non-Breaching Seller

A party in a contract that has not failed to fulfill any term of the agreement, in contrast to a breaching party who has failed to perform as promised.