Which of the following statements is CORRECT?
A) The Fed's actions are subject to executive branch control.
B) Politically controlled banks are better at fighting inflation than are independent central banks.
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 System is considered to be an independent central bank, which means that it operates independently of the executive and legislative branches of government. While it is subject to some oversight from Congress, it is not under direct control of either branch. Option A is incorrect because the Fed is designed to be independent of executive branch control. Option B is also incorrect as there is evidence to suggest that independent central banks are better at fighting off inflation than politically controlled banks. Option D is incorrect as the Federal Reserve System is subject to significant Congressional oversight, including regular reporting requirements and appearances before congressional committees.

Which of the Following Statements Is CORRECT