The Fed Has Goal Independence but Not Instrument Independence

question 12

True/False

The Fed has goal independence but not instrument independence.

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Definitions:

Cy Pres Doctrine

A legal principle that allows a court to amend the terms of a charitable trust or gift if its original purpose becomes impossible or impracticable to achieve.

Settlor

A person who creates a trust. Also called trustor.

Charitable Purposes

Activities undertaken with the aim of providing relief to the poor, advancing education, or other acts benefiting the community without profit motive.

Formalities

Specific procedures or requirements that must be observed in legal transactions, such as contracts or the execution of a will.