{anyone mind helping me pleaaase???} :)

Social Studies

1 answer:

lianna [129]3 years ago

5 0

The statement included above is true.

The Federal Reserve is the US Central Bank. Its functions consist on controlling the money supply in order to soften recession periods, to maintain acceptable levels of inflation (price levels) and to ensure maximum employment figures.

The Federal Reserve is independent of the US goverment, its decisions do not need to be ratified by the President. This enables that the decisions taken are only triggered by economic aims and incentives, and there are no temptations, from the side of the goverment politicians, to use the mechanisms of the money supply to achieve short-term political or electoral goals. Money supply should be managed taking into account long-term economic objectives. Its independency from the goverment also makes it easier to approve policies than are unpopular but economically benefitial in the long-run, as afterwards, its Board of Directors will not be punished by the electorate.

However, the Federal Reserve works under the surveillance of the Congress.

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