In: Economics
Which of the following statements best describes the political control of the Federal Reserve? Use letters in alphabetical order to select options
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Which of the following institutions is responsible for ensuring that enough currency and coins are circulating through the financial system to meet public demands? Use letters in alphabetical order to select options
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If a Central Bank decides it needs to decrease both the aggregate demand and the money supply, then it will Use letters in alphabetical order to select options
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In the United States, which institution is primarily responsible for inspecting credit unions? Use letters in alphabetical order to select options
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1. Option B. Policy decisions of the Fed do not require congressional approval, and the president can ask for the resignation of a Federal Reserve governor as the president can with cabinet positions.
Explanation: The Fed has policy independence but the board members are appointed by the President.
2. Option D. The Federal Reserve
Explanation: The Federal Reserve is the central bank of the US which controls the money supply.
3. Option B. Follow tight monetary policy.
Explanation: A tight monetary policy would result in a lower money supply and lower output.
4. Option A. National Credit Union Administration
Explanation: The National Credit Union Administration is an agency of the US Fed, which is responsible for monitoring the credit unions.