Asked by Jesus Gonzalez Jauregui on Jun 27, 2024
Verified
The responsibility for monetary policy in the United States lies with
A) the president.
B) the presidents of the Federal Reserve Banks.
C) the chairman of the Board of Governors of the Federal Reserve System.
D) the Board of Governors of the Federal Reserve System.
E) both the president and the chairman of the Federal Reserve Board of Governors.
Monetary Policy
The process by which a central bank, currency board, or regulatory authority manages the money supply to achieve specific goals such as controlling inflation, maintaining employment, and stabilizing the currency.
Federal Reserve System
The central banking system of the United States, which oversees the nation's monetary policy, regulates banks, maintains financial stability, and provides financial services.
Board of Governors
An executive or administrative arm of an organization or system, often responsible for making key decisions and overseeing operations.
- Describe the Federal Reserve's role and responsibilities in the United States monetary policy.
Verified Answer
ZK
Zybrea KnightJul 01, 2024
Final Answer :
D
Explanation :
The Board of Governors of the Federal Reserve System is responsible for monetary policy in the United States. While the Fed is independent of the government, the Board of Governors is appointed by the president and confirmed by the Senate. The presidents of the Federal Reserve Banks and the chairman of the Board of Governors also play important roles in monetary policy, but ultimate responsibility lies with the Board of Governors.
Learning Objectives
- Describe the Federal Reserve's role and responsibilities in the United States monetary policy.