The Power Within the Federal Reserve Was Effectively Transferred to the Board

question 13

Multiple Choice

The power within the Federal Reserve was effectively transferred to the Board of Governors by

• A) the banking legislation of the Great Depression.
• B) Supreme Court decisions in the 1950s.
• C) the Depository Institutions Deregulation and Monetary Control Act of 1980.
• D) the Treasury-Federal Reserve Accord of 1951.

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Definitions:

International Copper Cartel

An agreement among some of the world's major copper-exporting countries to limit supply in order to maintain or increase copper prices.

Kinked-Demand Model

A model in oligopoly markets, suggesting that firms might face a demand curve that has a sharp bend or "kink" at the current price, leading to sticky prices.

Price Rigidity

The situation in which prices do not change quickly in response to changes in demand or supply, remaining static despite market pressures.

Price Leadership Model

A market situation in which one leading company sets prices that other companies in the sector follow.