The credit crisis and the Federal Reserve's response to it faced criticism from Congress.The Treasury Department requested a review of the central bank's structure and governance.There is now broad support for auditing the Fed using the Government Accountability Office.The change in the economic and political environment of the Fed means the Fed needs to adapt its ____ control.
A) structural
B) hierarchical
C) strategic
D) managerial
E) operations

Question

Quizplus · Accepted Answer

The sentence suggests that the economic and political environment of the Fed has changed and the central bank needs to adapt its control accordingly. Therefore, the appropriate type of control in this context is strategic control, which involves selecting and implementing strategies to achieve organizational goals in a changing environment. Structural, hierarchical, managerial, and operations control refer to more static forms of control that are focused on maintaining order and efficiency in organizations, rather than adapting to changes in the external environment.

The Credit Crisis and the Federal Reserve's Response to It