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Is the Federal Reserve an independent institution Explain.Solut.pdf

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shankaranilahuja

Is the Federal Reserve an independent institution? Explain. Solution The Federal Reserve is considered as an independent central bank. It is independent since its decisions do not have to be ratified by the President or Congress. The Federal Reserve System was created by Congress in 1913 \"to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes.\".

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Is the Federal Reserve an independent institution? Explain. Solution The Federal Reserve is considered as an independent central bank. It is independent since its decisions do not have to be ratified by the President or Congress. The Federal Reserve System was created by Congress in 1913 "to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."

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