chloeroebuck2021
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Classify each statement about the Federal Reserve System as either true or false.

- The Federal Reserve was established by the U.S. Constitution in the late 1700s.
- The national objectives of the Federal Reserve include promoting economic growth, full employment, stable prices, and moderate interest rates.
- All Federal Reserve actions are subject to veto by the executive branch.
- The Federal Reserve determines monetary policy in the United States.
- The Federal Reserve was created by the Federal Reserve Act of 1913.

Respuesta :

lawrencemma2165

FALSE - The Federal Reserve System was created by the Federal Reserve Act of 1913, meaning that the Fed was not created by the U.S. Constitution.

TRUE - The objectives of the Fed include maintaining full employment and price stability, which can often be conflicting goals in terms of policy actions.

FALSE - The Federal Reserve System is independent from control by the executive branch. This reduces the probability of political influence on monetary policy decisions.

TRUE - One of the jobs of the Federal Reserve is to determine the amount of money in circulation. This is called monetary policy.

TRUE - The Federal Reserve was created by the Federal Reserve Act of 1913, following an especially severe banking panic in 1907.