Which of the following is NOT a way congress can threaten the FED if the FED is not doing what they want?

	A.	taking direct control of the FED with the Senate
	B.	impeaching the chairman
	C.	abolishing the open markets committee
	D.	packing the open markets committee with additional appointees

Court hearings provide an avenue for members of Congress to treat the FED as...

	A.	a variable in their decision making
	B.	an ally in resisting the power of other branches of government
	C.	a non-factor in decision making
	D.	a scapegoat for poor economic performance

What is the commonly viewed distinct starting point of modern FED independence?

A.

when Volcker became chairman in 1979

B.

Congress realized the need for a central bank and created the Federal Reserve System in 1913

C.

When the FED moved to their own building in 1937

D.

the monetary accord of 1951

Uncertainty stemming from discretionary monetary policy causes...

	A.	nothing
	B.	internal pressures
	C.	external pressures
	D.	internal and external pressures

Why does Milton Friedman believe the Fed is unwilling to change its methods of operation?

A.

being unwilling to admit mismanagement

B.

foreign government advocating with them

C.

bad faith actions

D.

private-market interference

What is moral suasion in the field of credit?

	A.	to persuade or convince the commercial banks to advance credit in accordance with the economic interest of another country.
	B.	persuading a person or group to act in a certain way through rhetorical appeals
	C.	to use moral directives instead of monetary directives when persuading banks.
	D.	appeals to banks to not make speculative loans