Which of the following is true of the Fed?
A)The law lets the Fed decide how best to promote full employment and output in the U.S.economy.
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.

Question

Quizplus · Accepted Answer

The Federal Reserve has the legal mandate to promote full employment and stable prices in the economy. This mandate is set by Congress, but the Fed has the independence to decide how best to achieve this goal through monetary policy. Congress does not approve new monetary policy, but they can hold hearings to oversee the actions of the Fed. The president does not sit on the Board of Governors and does not have direct authority over monetary policy decisions.

Which of the Following Is True of the Fed