Describe the membership, tenure, and structure of the Fed.
What will be an ideal response?
Its seven members are appointed by the president, with the consent of the Senate, for nonrenewable 14-year terms, and they may not be removed except for cause. The Chairperson serves for four years. Its most important function is to regulate, to the extent possible, the supply of money (both in circulation and in bank deposits) and the price of money (in the form of interest rates). The Fed sets monetary policy, that is, the effort to shape the economy by controlling the amount of money and bank deposits and the interest rates charged for money.
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Concern over the use of money to influence politicians dates to __________
a. the beginning of the twentieth century b. the ratification of the Constitution in 1791 c. Andrew Jackson's administration in the 1830s d. Ulysses S. Grant's administration in the 1870s
One consequence of World War I was a realization of the failures of liberalism to maintain world peace
Indicate whether the statement is true or false
What is one reason that the Index of Consumer Confidence is politically significant?
a. It is slowly going bankrupt, but no politician will touch it. b. It predicts how well the dollar will do against other key currencies, such as the Euro. c. It can lead politicians to raise or lower key interest rates. d. It indicates which party will likely win the election.
SELECT ALL THAT APPLY. In order for collective security agreements to be successful, acts of aggression must be ______.
a. identifiable b. definable c. justifiable d. disputable