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 of the United States sits on the Board of Governors.
D) Congress must approve any new monetary policy.
E) The President of the United States must approve any new monetary policy.

Question

Quizplus · Accepted Answer

The Federal Reserve, or "the Fed," is granted independence by Congress to make monetary policy decisions in order to promote full employment and stable prices. Congress sets the Fed's mandate, but the Fed determines the best way to achieve it.

Which of the Following Is True of the Fed