The financial environment needs a lot of transparent Federal Reserve monetary policy. With transparency, there will be understandable rules and procedures, to remove unwanted market uncertainties and volatility, and thereafter reduce the costs of anti-inflation monetary policy.
The Federal Reserve works include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services etc.
When transparency is increase at the Federal Reserve is is known to be vital given the scope of the Fed's activities. It can also reduce the independence of the Fed and therefore lower their ability to fight inflation.
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Which statement best describes the Federal Reserve's current level of transparency to the American public?
O The actions of the Fed are largely carried out in secrecy with litle regard to public transparency
O The Fed is somewhat transparent with regard to some aspects of monetary policy, but does not disclose details regarding macroeconomic conditions and goals.
The Fed only reports to the American public during periods of economic slow down.
O The Fed is extremely transparent with regard to monetary policy and discloses goals, targets, and predictions for the macroeconomy
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