Monetary policy is
A)controlled by the president,who appoints the members of the Board of Governors
B)controlled by the president,who appoints the members of the Open Market Committee
C)insulated from politics since the term of only two members of the Board of Governors expire during the tenure of any modern President of the U.S.
D)insulated from politics because the Federal Reserve Board is the bankers' bank
E)controlled by the president

Question

Quizplus · Accepted Answer

Monetary policy is set by the Federal Reserve Board, an independent entity created by Congress. Although the president does appoint members of the Board of Governors, their terms are staggered and only two expire during the tenure of any modern President of the U.S., ensuring that their decisions are not significantly influenced by politics. Additionally, the Federal Reserve Board operates as the "bankers' bank," providing financial services to banks and not directly to the government, further insulating them from political pressures.

Monetary Policy Is