What is the Federal Reserve System, and what is its role in managing the U.S. economy? Why might the chairman of the Federal Reserve feel political pressure even though he or she is independent?
Answer:
An ideal response will:
1. State that the basic function of the Federal Reserve is to control monetary policy by using interest rates in managing the money supply.
2. Discuss the membership and terms of service for the Federal Reserve Board of Governors, and explain what it means to be an independent regulatory commission.
3. Explain the federal funds rate, how it affects monetary policy, and its relation to the prime interest rate.
4. Explain why it is that even though the chairman of the Federal Reserve is not a well-known national figure, the chair can still come under constant scrutiny.
5. Provide a clear and concise conclusion.
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The cycle effect refers to the tendency for presidents to ______.
a. undergo rapid changes in their popularity regardless of conditions in the nation b. depend heavily on national emergencies to push their legislative agenda through Congress c. experience predictable shifts in their popularity over the course of their presidency d. start their first term with low popularity, which then increases as their legislative program is enacted e. have periods of very high and very low popularity at random intervals throughout their presidency
The _____ normally proposes time limits on debate for any bill.
A. House Rules Committee B. House Ways and Means Committee C. HouseOversight and Government ReformCommittee D. House Appropriations Committee E. House Budget Committee
The Founding Fathers were driven by a mix of idealism and realism
a. True b. False Indicate whether the statement is true or false
In 1883, New York became the first state to enact a merit system
a. True b. False Indicate whether the statement is true or false