The reason for the Fed being set up as an independent agency of government is to
A. allow it to earn profits like private firms.
B. make it be managed and controlled by member banks.
C. protect it from political pressure.
D. let it be able to compete with other financial institutions.
Answer: C
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Everything else equal, a decrease in the supply of dollars in exchange for pesos:
A) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. B) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. C) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. D) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
A market has ten firms, whose market shares are given in the table above
a) If firms I and J wanted to merge, according to the Department of Justice guidelines, would the Department of Justice challenge the merger? b) If firms A and B wanted to merge, according to the Department of Justice guidelines, would the Department of Justice challenge the merger?
Gradually over the last two decades, ________ policy has emerged as the major stabilization policy tool in the United States
A) monetary B) fiscal C) exchange rates D) deregulatory
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more negative (or less positive). b. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). c. The real risk-free interest rate and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.