Which of the following statements is true?
A)The Fed does not need to rely on the Government for its operating funds.
B)Open market operations can be used by the Fed only to tighten monetary policy and not to ease it.
C)The Board of Governors of the Fed is headed by the President of the United States.
D)The operations of the Fed are deeply dependent on the actions of the ruling political power.

Question

Quizplus · Accepted Answer

The Fed is funded primarily through its own income, including interest earned on its assets and fees charged for services provided to financial institutions. It does not rely on the Government for its operating funds.

B, C, and D are all false statements.

Which of the Following Statements Is True