The Fed is the most independent of all US government agencies. What is the main difference between it and other government agencies that explains the Fed's greater independence?

A. The Fed's source of revenue is free from the appropriations process

B. Congress cannot pass legislation that would restrict the Fed's independence

C. The Fed has established performance measures that it is required to achieve

D. The Fed is a private, profit-making institution

Question

Social Studies

Diamond Lang

5 August, 17:54

The Fed is the most independent of all US government agencies. What is the main difference between it and other government agencies that explains the Fed's greater independence?

A. The Fed's source of revenue is free from the appropriations process

B. Congress cannot pass legislation that would restrict the Fed's independence

C. The Fed has established performance measures that it is required to achieve

D. The Fed is a private, profit-making institution

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Answers (1)

Know the Answer?

Mariana Cameron · Answer 1

B. Congress cannot pass legislation that would restrict the Fed's independence

Explanation:

The Fed is an executive branch that has administrative autonomy to implement and manage monetary policy. This is important for monetary policy to have the purpose of maintaining a healthy economic environment without being used for political purposes. The Fed is free from interference by the National Congress, so Congress cannot act to diminish its independence.