The Theory of Bureaucratic Behavior When Applied to the Fed

question 19

Multiple Choice

The theory of bureaucratic behavior when applied to the Fed helps to explain why the Fed

• A)was supportive of congressional attempts to limit the central bank's autonomy.
• B)was so secretive about the conduct of future monetary policy.
• C)sought less control over banks in the 1980s.
• D)was willing to take on powerful groups that may threaten its autonomy.

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Definitions:

Bonds Payable

Long-term liabilities representing borrowed money that a company must repay to bondholders, typically with periodic interest payments.

Long-Term Investment

Investments in securities or assets intended to be held for several years or more to generate long-term returns.

Cash Surrender Value

Cash surrender value is the amount of cash that a life insurance policyholder can receive upon the cancellation of their policy before its maturity or the insured event.

Capital Lease

A lease agreement considered to have the economic characteristics of asset ownership, thus it is recorded as an asset and liability on the balance sheet.