Factors That Provide the Federal Reserve with a High Degree

question 52

Multiple Choice

Factors that provide the Federal Reserve with a high degree of independence include

• A) 14-year terms for members of the Board of Governors.
• B) a four-year term for the chairman of the Board of Governors that is not coincident with the president's term of office.
• C) constitutional independence from Congress and the president.
• D) all of the above.
• E) only A and B of the above.

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Definitions:

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess the relative value of currencies.

Mexican Peso

The currency of Mexico, used as a medium of exchange within the country.