Which of the following statements is true?
A)The Federal Reserve is less independent than the Bank of England or the Bank of Japan.
B)Each president has the right to appoint all the Federal Reserve officials.
C)The Federal Reserve seldom conducts policy concerned with long-run stability.
D)The Treasury supervises Federal Reserve activities.
E)The Federal Reserve can prevent the government from using monetary policy for short-run political gain.

Question

Quizplus · Accepted Answer

The Federal Reserve is designed to serve as an independent central bank, which is capable of taking monetary policy action that isn't directed towards any short-term governmental policies but instead addresses long-term financial stability. The high level of independence of the Fed is enshrined in the law and is usually regarded as critical to its proper functioning.

Which of the Following Statements Is True