The Principal-Agent View of Fed Motivation Predicts That the Fed

question 74

Multiple Choice

The principal-agent view of Fed motivation predicts that the Fed acts

• A)to promote the interests of the general public.
• B)to promote the interests of the Fed's principalthe President of the United States.
• C)in order to increase its power, influence, and prestige.
• D)in order to make sure its agentscommercial bankscarry out its wishes.

---

Definitions:

Child Care Benefits

Employer-provided benefits or subsidies designed to help employees with the costs and logistics of child care.

Family and Medical Leave Act

A U.S. federal law that requires covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons.

Liability Concerns

Refers to worries or issues related to the responsibilities and potential legal obligations of individuals or organizations.