Federal reserve is considered independent

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Reference no: EM13834834

1. The Federal Reserve is considered independent because

A. it has its own source of funds.

B. ability to set the goals of monetary policy

C. ability to control monetary policy

D. all of the above.

2. National banks must take overnight loans from the Federal Reserve.

True

False

3. If the Fed wants to increase the money supply, it can lower the reserve requirement.

True

False

4. One reason the Federal Reserve can conduct active monetary policy is that the dollar has a floating exchange rate.

True

False

Reference no: EM13834834

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