Asked by Jalen Denoncourt on Jun 07, 2024
Verified
Statement I: The president basically makes monetary policy.
Statement II: The Board of Governors of the Fed serves at the president's pleasure and can be summarily dismissed.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Board of Governors
The leading body of a central bank system or other regulatory agency, responsible for setting policies and overseeing the institution's operations.
Monetary Policy
The process by which a central bank, currency board, or government manages the supply of money and interest rates to achieve economic objectives like controlling inflation, consumption, growth, and liquidity.
President's Pleasure
A legal term denoting the indefinite detention of a prisoner because the head of state has not exercised their power to limit the period of detention.
- Understand the roles and responsibilities of the Federal Reserve System in the United States.
Verified Answer
AS
Aneeza ShabbirJun 08, 2024
Final Answer :
D
Explanation :
The Federal Reserve, not the president, primarily makes monetary policy in the United States. The Board of Governors of the Federal Reserve is independent and its members cannot be dismissed by the president without cause, making both statements false.
Learning Objectives
- Understand the roles and responsibilities of the Federal Reserve System in the United States.