Question

Which of the following is not a feature of Federal Reserve independence?

		a. Selection of the final goals of monetary policy
		b. 14-year terms of Board members
		c. Outside congressional appropriations process
		d. Exempt from General Accountability Office (GAO) audit of monetary policy

Answer 1

Exempt from General Accountability Office Audit.

( Federal system is granted independence so that it can pursue statutory goals effectively with out interference from the Government.

* Federal Reserve formulates and implements monetary policy to promote maximum employment ,stable price and moderate long term interest rates..

*Fed's governors have staggered and lengthy nonrenewable 14-year tenure.

* Fed's budget is not subjected to Congressional appropriations.

* Fed is self-funded.

> However, Fed isn't exempt from General Account Office audit of monetary policy. Infact, fed is extensively auditored in order to ensure its accountability.)