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.
E) only acts to lower taxes and increase spending when there are recessionary tendencies in the economy.

Question

Quizplus · Accepted Answer

The Federal Reserve System pursues an independent monetary policy which can conflict with the government's economic policy. It was created by the government but is designed to be independent from political influence. Its primary objective is to stabilize prices and promote economic growth, which can sometimes come into conflict with the goals of elected officials.