Why Might Congress Benefit from the Fed Being Self-Financed

question 33

Multiple Choice

Why might Congress benefit from the Fed being self-financed?

• A)Self-financing increases Congressional control over the Fed.
• B)Self-financing reduces the Fed's exposure to external pressures.
• C)Self-financing gives the Fed an incentive to expand the money supply, which ultimately results in Congress having additional funds to spend.
• D)Congress does not benefit from the Fed being self-financed; Congress is obliged by the Constitution to allow the Fed to be self-financed.

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Definitions:

Primacy Effect

A cognitive phenomenon where the first items presented in a series are more likely to be remembered than items presented later on.

First Impressions

First Impressions are the initial thoughts and judgments one forms about another person or situation, often based on limited information but impactful on subsequent perceptions.

Memory

The faculty by which the mind stores and remembers information, critical for learning and the continuity of personal identity.

Flashbulb Memory

A vivid and detailed memory of a significant moment.