Which of the following statements is true concerning the Federal Reserve System?Multiple choice question.The Fed is a wholly run government agency.The Fed is completely independent of the government.The Fed is independent within the government.The Fed is run by Congress, but independent of the president.
Question
Which of the following statements is true concerning the Federal Reserve System?Multiple choice question.The Fed is a wholly run government agency.The Fed is completely independent of the government.The Fed is independent within the government.The Fed is run by Congress, but independent of the president.
Solution
The correct statement is: "The Fed is independent within the government."
Here's why:
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The Fed is not a wholly run government agency. It is a central banking system, but it operates independently of the government in many ways.
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The Fed is not completely independent of the government. It was created by Congress and its actions are subject to Congressional oversight.
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The Fed is independent within the government. This means that while it is part of the government, it operates independently. Its decisions do not have to be ratified by the President or anyone else in the executive or legislative branches of government.
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The Fed is not run by Congress, but independent of the president. While it's true that the Fed is independent of the president, it's not accurate to say that it's run by Congress. The Fed's decisions are made by the Federal Open Market Committee (FOMC), which includes the seven members of the Board of Governors (appointed by the President and confirmed by the Senate) and five Federal Reserve Bank presidents.
Similar Questions
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The Fed operates independently within the government, but not independent of it because new members are appointed by:Multiple choice question.the President of the United States and must have all actions confirmed by the President. the President of the United States and confirmed by the Senate. Congress and must have all actions confirmed by Congress. Senate and must have all actions confirmed by the President of the United States.
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Which of the following statements is INCORRECT?Question 2Answera.The federal government is formed by the political party or coalition of parties with the majority of seats in the lower house of parliament, the House of Representatives.b.The legislature is responsible for the execution of policy agreed to by the Prime Minister and Cabinet.c.The separation of powers is stronger between the judiciary and the other two branches of government than it is between the executive and the legislature.d.A separation of powers between the branches of government aims to promote impartial and independent decision-making, and also seeks to prevent the misuse and abuse of powers.
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