The Fed Is Not Completely Independent Because

question 86

Multiple Choice

The Fed is not completely independent because

• A)Congress could rewrite the laws that created the Fed
• B)it relies heavily on Congressional appropriations
• C)the president sits on the Board of Governors
• D)Congress must approve any new monetary policy
• E)the president must approve any new monetary policy

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Government Spending

Expenditure by the government in any given period, typically on public services, defense, infrastructure, and social welfare programs.

Regulation

Rules or directives made and maintained by an authority to regulate behavior, usually in the context of business, financial markets, or a profession.

Expansionary Monetary Policy

A central bank policy aimed at increasing the money supply to stimulate economic growth by lowering interest rates and increasing liquidity.