Question

For part 1 the options are: 5, 7, 12

5. The Federal Reserve's organization There are Federal Reserve regional banks. Which of the following contributes to making the Federal Reserve an independent policymaking body? Members of the Board of Governors are appointed for 14-year terms. O There are 12 Federal Reserve banks. O Its role is written into the U.S. Constitution. . In order to decrease the number of dollars in The Federal Reserve's primary tool for changing the money supply is the U.S. economy (the money supply), the Federal Reserve will government bonds.

For part 2 the options are:

for part 3 the options are: buy or sell

Answer 1

There are 12 such regional banks in 12 districts each responsible for member banks in its respective district

The independence of the Fed comes from the fact that its BOG members are selected for 14 year term. This prevents it from political pressure.

Primary tool is open market operations which is most frequently used (where Fed buys/sells government securities in open market).

In order to decrease money supply Fed would sell government bonds.

Answer 2

The Federal Reserve's primary tool for changing the money supply isopen market operations   . In order to increase the number of dollars in the U.S. economy (the money supply), the Federal Reserve willbuy   government bonds.