The Federal Reserve Board

question 36

Multiple Choice

The Federal Reserve Board

• A) was the central policy-making agency in the wake of the 2008 economic downturn seeking to avert a recession in the United States.
• B) is a mechanism whereby the country's money supply is controlled by elected officeholders.
• C) lacks autonomy because of Congressional control, which has raised concerns about the United States to act as a global leader.
• D) has too many ties to the U.S. banking industry, because its leaders are appointed by the heads of major banks.
• E) is part of the U.S. Treasury Department.

---

Definitions:

Income

The amount of money received by an individual or entity, typically through work, investments, or other sources over a certain period.

Saving

The portion of income not spent on current consumption, but rather set aside for future use, often by depositing in financial institutions or investing.

Households

Units consisting of one or more persons living in the same dwelling and sharing meals or living accommodation; it is the basic unit in a society for consumption and decision making.

Firms

Business organizations or entities engaged in commercial, industrial, or professional activities.