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

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

Solutions

Expert Solution

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.)

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

What factors limit the independence of the Federal Reserve?

The Federal Reserve is supposed to have some degree of independence from the Federal government. What...

The Federal Reserve is supposed to have some degree of independence from the Federal government. What would be some risks of having the government directly involved in monetary policy? What might be a benefit of letting the government control monetary policy?

What is meant by the "independence" of the Fed? Is the Federal Reserve independent? Explain why...

What is meant by the "independence" of the Fed? Is the Federal Reserve independent? Explain why or why not.

Explain the pros and cons of the independence of a central bank. Should the Federal Reserve...

Explain the pros and cons of the independence of a central bank. Should the Federal Reserve be independent from the United States government? Why or why not?

Compare the structure and independence of the European System of Central Banks and the Federal Reserve...

Compare the structure and independence of the European System of Central Banks and the Federal Reserve System.

Q41H. Which of the following is not true about the Federal Reserve System? a. The Federal...

Q41H. Which of the following is not true about the Federal Reserve System? a. The Federal Reserve System consists of 12 regional Federal Reserve Banks. b. The Fed System is a department in the Executive Branch of the U.S. government and the Fed chairman reports directly to the President. c. The Federal Reserve conducts U.S. monetary policy, supervises and regulates banking in the United States, maintains stability in the U.S. financial system, and provides financial services to the government and...

Question