Chapter 16 Homework Questions

1. Why was the Federal Reserve System set up with 12 regional Federal Reserve banks rather than a single central bank?

2. Do the 14-year, non-renewable terms for Fed governors effectively insulate the Board of Governors from political pressure?

3. What primary difference between the Fed and federal government agencies like the EPA or the DOD makes the Fed the more independent from the control of Congress than U.S. government agencies?

4. T or F: The independence of the Fed leaves it completely unaccountable for its actions.