Financial Markets and Institutions (2-downloads)

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5. Which entities in the Federal Reserve System con-

trol the discount rate? Reserve requirements? Open

market operations?

6. Do you think that the 14-year nonrenewable terms for

governors effectively insulate the Board of Governors

from political pressure?

7. Compare the structure and independence of the

Federal Reserve System and the European System

of Central Banks.

8. The Fed is the most independent of all U.S. govern-

ment agencies. What is the main difference between

it and other government agencies that explains the

Fed’s greater independence?