Allowing the Fed to face the political pressure from Congress and the President would impart an disinflationary bias to monetary policy. an deflationary bias to monetary policy. a countercycliclal bias to monetary policy. an inflationary bias to monetary policy. QUESTION 10 What are covenants? Rules and restrictions tied to a loan that limit the borrower's behavior. An asset forfeited by the borrower if the borrower defaults. A debt contract that specifies the amount the borrower must repay to the lender. A legal obligation to repay any funds that are borrowed