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Related to the Apply the Concept: Should Congress Change the Structure of the Fed?] Michael Bordo and Nobel Laureate Edward Prescott of the Federal Reserve

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Related to the Apply the Concept: "Should Congress Change the Structure of the Fed?"] Michael Bordo and Nobel Laureate Edward Prescott of the Federal Reserve Bank of Cleveland argue that: "Reserve Banks partially insulate the FOMC from the political process because Reserve Bank presidents are not political appointees and this helps the FOMC take a longer-term view when making policy decisions." If Reserve Bank presidents are not political appointees, who selects them for their positions? Are any members of the FOMC political appointees? Reserve Bank presidents are members of the FOMC who are political appointees because There OA. elected by Class B and Class C directors, are not any; the FOMC was created to be free of all political influence OB. elected by Class B and Class C directors; are some, members of the Board of Governors are part of the FOMC OC. elected by voters in their district, are not any; the FOMC was created to be free of all political influence OD. chosen by Congress; are some members of the Board of Governors are part of the FOMC In the first volume of his history of the Federal Reserve System, Allan Meltzer titled one of his chapters "Under Treasury Control, 1942-1951." Source: Allan H. Meltzer, A History of the Federal Reserve, Volume I: 1913-1951, Chicago: University of Chicago Press, 2003, Ch. 7. Which of the following statements are true and help explain why Meltzer considered the Fed to have been under Treasury control during those years (Select all that apply) A. The Treasury encouraged the Fed to actively buy bonds that private investors would not. B. Treasury exerted more control over the Fed during this period to help finance World War II C. The Treasury did not agree with the Fed's decision to fix interest rates during this period. D. The Treasury wanted the rate on government securities to be held at a low level

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