Which statement is correct?
A) The Fed's actions are subject to executive branch control.
B) Politically controlled banks are better at fighting inflation than independent central banks are.
C) The Federal Reserve is considered to be an independent central bank.
D) The Federal Reserve System is not subject to congressional oversight.

Question

Quizplus · Accepted Answer

The Federal Reserve is considered to be an independent central bank, meaning it is not controlled by the executive or legislative branches of government. The Federal Reserve System is subject to congressional oversight, so option D is not correct. Option A is incorrect because the Fed is independent, and option B is not necessarily true as central bank independence has been shown to be effective in fighting inflation.

Which Statement Is Correct