For each of the following misconceptions about the Fed, identify what is wrong with the statement and why.

a. The Federal Reserve lacks accountability because no one audits the Fed.

There’s no way to know what really goes on behind the scenes.

b. The Federal Reserve just prints more money when the economy needs it and gives it to banks.

c. A government agency should not have so much control over the economy because politicians are always just going to do anything to win the next election.