Which of the following statements about the structure of the Fed is an advantage from the perspective of conducting monetary policy?
A) The two policymaking bodies of the Fed are deliberately large to allow for different viewpoints and they work very closely with other political institutions.
B) The two policymaking bodies of the Fed are deliberately large to allow for different viewpoints and they work relatively independently of other political institutions.
C) The two policymaking bodies of the Fed are small to allow deliberations in private and they work relatively independently of other political institutions.
D) The two policymaking bodies of the Fed are small to allow members to work closely with other political institutions.
Ans: C) The two policymaking bodies of the Fed are small to allow deliberations in private and they work relatively independently of other political institutions.
You might also like to view...
The real interest rate can be approximated by
a. adding the nominal interest rate and the inflation rate b. subtracting the nominal interest rate from the inflation rate c. adding last year's nominal interest rate to this year's d. subtracting the inflation rate from the nominal interest rate e. none of the above
It may be argued that theoretically, international capital movements
A) tend to hurt labor in donor countries. B) tend to hurt the donor countries. C) tend to hurt the recipient countries. D) tend to hurt labor in recipient countries. E) increase future production in donor countries.