What Do Most People Get Wrong About the Fed?

What are the two contrasting views about the Federal Reserve's power?

• It is a financial advisor and a puppet master.

• It is a puppet master and a weak institution.

• It is a weak institution and a stabilizing force.

• It is a stabilizing force and a puppet master.

What event accelerated the questioning of the Fed's authority?

• The 2010 Gallop poll

• The introduction of negative interest rates

• The financial crisis

• The 2006 Gallop poll

How did public trust in the Fed change between 2006 and 2010?

• It remained the same.

• It increased significantly.

• It decreased significantly.

• It fluctuated without a clear trend.

What is a major constraint on the Fed's policy tools?

• Public opinion

• Lack of legal authority

• Insufficient financial resources

• Political repercussions

What dilemma does the Fed face as it gains more authority?

• It becomes less popular with the public.

• It faces more legal challenges.

• It is the only game in town but faces more criticism.

• It loses support from other central banks.