1) Members of Congress are able to influence monetary policy, albeit indirectly, through their ability to
A) withhold appropriations from the Board of Governors.
B) withhold appropriations from the Federal Open Market Committee.
C) propose legislation that would force the Fed to submit budget requests to Congress, as must other government agencies.
D) instruct the General Accounting Office to audit the foreign exchange market functions of the Federal Reserve.
2) Explain two concepts of central bank independence. Is the Fed politically independent? Why do economists think central bank independence is important?
3) Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System?
4) Who are the voting members of the Federal Open Market Committee and why is this committee important? Where does the power lie within this committee?