The Federal Reserve's powers are defined in the U.S. Constitution.

True

False

Is the Fed System responsible to the executive branch?

Yes

No

Real economic stability requires all of the following except:

sound fiscal policy

political leaders with degrees in economics

sufficient competition in the economy

wise monetary policy

Monetary policy is flexible because:

The Federal Open Market Committee meets every six weeks and acts on decisions immediately

The Federal Reserve System is responsible to Congress

Policymakers stretch before each Federal Open Market Committee meeting

The Federal Open Market Committee meets every eight weeks and acts on decisions immediately