The Federal Reserve System:
A) was created by and is owned by the government.
B) pursues independent fiscal policy at the behest of Congress.
C) never acts to control inflation.
D) pursues an independent monetary policy which can conflict with the government's economic policy.

Question

Quizplus · Accepted Answer

The Federal Reserve System pursues an independent monetary policy, which can conflict with the government's economic policy. While the Federal Reserve is created by the government, it is not owned by the government and is intended to be independent from political influence. One of its primary mandates is to control inflation, so statement C is incorrect. Statement B is also incorrect, as the Federal Reserve pursues monetary policy independently, not fiscal policy.