As a result of the Treasury-Federal Reserve Accord,
A)the Fed was no longer required to maintain the interest rate on short-term Treasury securities.
B)the Fed agreed to maintain the interest rate on short-term Treasury securities.
C)the Treasury was given a larger role in the formulation of monetary policy.
D)the Fed was given a larger role in the formulation of fiscal policy.

Question

Quizplus · Accepted Answer

The Treasury-Federal Reserve Accord of 1951 ended the practice of the Federal Reserve supporting government debt at a fixed interest rate. Therefore, the Fed was no longer required to maintain the interest rate on short-term Treasury securities.

As a Result of the Treasury-Federal Reserve Accord