Which of the following is an accurate statement regarding the evolution of the Federal Reserve System?
A) The independence of the Federal Reserve has been systematically eroded by legislation.
B) The Federal Reserve has shifted from an agency controlled by the states to a federally controlled agency.
C) The Federal Reserve has shifted from a fiscal policy agency to a monetary policy agency.
D) The Federal Reserve has shifted from a regional service agency to a national policy-making institution.

Question

Quizplus · Accepted Answer

The Federal Reserve System has evolved from its original role as a regional service agency to a national policy-making institution. This evolution is seen in the increased power and influence of the Federal Reserve Board in Washington, D.C., and the decreased power of the regional Reserve Banks. The Federal Reserve now focuses primarily on monetary policy rather than fiscal policy. While there have been some attempts to erode the independence of the Federal Reserve, overall it still maintains a high degree of autonomy. Therefore, option A is incorrect, and the Federal Reserve was never controlled by states, so option B is incorrect. Option C is partially true but doesn't capture the comprehensive evolution.

Which of the Following Is an Accurate Statement Regarding the Evolution