Question 7 (2.5 points) Most of the TARP funds were used to fund a stimulus package. finance the operations of the Federal Reserve. Opay for losses incurred by Fannie Mae and Freddie Mac. O make direct purchases of preferred stock in banks to increase their capital. Question 9 (2.5 points) The main argument in favor of Fed independence is that interest rates would probably be lower if Congress controlled the Fed; thus hurting savers. the Constitution requires it. monetary policy is too important and too technical to be determined by politicians congressional control of the Fed was tried during the 1960s and did not work well. Question 13 (2.5 points) Federal Reserve district banks perform all of the following roles EXCEPT Omanaging checking clearing in the payments system. Operforming regulatory functions. direct foreign exchange operations O managing currency in circulation by issuing new Federal Reserve Notes