Transparency in Federal Reserve policy:
A) is a relatively recent phenomenon that tends to mitigate uncertainty in financial markets and leads to more effective monetary policy.
B) is a relatively recent phenomenon that tends to exacerbate uncertainty in financial markets and leads to less effective monetary policy.
C) has been in place since the Federal Reserve was formed.
D) has never been a hallmark of U.S.monetary policy.

Question

Quizplus · Accepted Answer

Transparency in Federal Reserve policy has become more prominent in recent years, with the introduction of regular press conferences and the publication of meeting minutes. This increased transparency has generally been seen as beneficial, as it helps to reduce uncertainty in financial markets and allows for more effective communication of monetary policy decisions.

Transparency in Federal Reserve Policy