1) Former Congressman Jack Kemp reportedly once said that he wanted to become the most powerful man in Washington, D.C.the chairman of the Board of Governors of the Federal Reserve System. What does Representative Kemp's comment imply about the power of the chairman of the Federal Reserve? Do you think he may have been exaggerating? Explain.

2) Former Board of Governors chairman Paul Volcker reportedly once said that the Federal Reserve is free to pursue any policy it desires, if it convinces Congress that such a policy is reasonable. What does Volcker's comment suggest about the independence of the Fed? Explain.

3) In recent years, has Fed policymaking become more or less transparent? Why?

4) Describe the structure and responsibility for policy tools in The Federal Reserve System.

5) Discuss similarities and differences between Ben Bernanke and Alan Greenspan in their respective roles as chairman of the Federal Reserve Board.