Who determines the quantity of securities purchased by the Federal Reserve to maintain independence?

The correct choice is that the Federal Reserve itself determines the quantity of securities it purchases. This independence is a fundamental aspect of the Federal Reserve's ability to conduct monetary policy effectively. By making its own decisions regarding the purchase of securities, the Federal Reserve can respond to economic conditions without political pressure.

This autonomy allows the Federal Reserve to focus on its dual mandate: promoting maximum employment and stabilizing prices. If the determination of securities purchases were influenced by external entities like the U.S. Treasury, Congress, or the public, it could lead to conflicts of interest or politically motivated decisions that might compromise the effectiveness of monetary policy. The independence of the Federal Reserve is crucial for maintaining trust in monetary policy and ensuring that it can operate in a manner that is beneficial for the overall economy.

In summary, the Federal Reserve's ability to independently decide on the quantity of securities to purchase enables it to effectively manage monetary policy, responding promptly to changes in the economic landscape.