Should the Fed be Subject to Congressional Oversight? (Coursework Sample)

Economics
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Introduction
Economics deals with both microeconomics and macroeconomics factors. Microeconomics is primarily concerned with factors that affect the economic behavior of people while macroeconomics is mainly concerned with factors that influence the aggregate economy. An example of a microeconomic factor is the actor o demand and supply while an example of a macroeconomic factor is the inflation and unemployment in a country. This essay comprises of two questions: question one and question two. Question 1 is concerned with why the economy is likely to face less violent revolution after a government's bonds have been widely held by the public. Question 2, on the other hand, deals with the congressional oversight and if federal agencies should be subject to the congressional oversight.
Question 1
A revolution may occur when the citizens of a given country are against the current government where they may riot against the government overthrowing it. If a government has most of its bonds held by the public, it implies that the public has given their money to the government and at the end of a given maturity period the government repays the bonds with interest. If the citizens of that country revolve, in this case they are likely to lose their money. The citizens therefore make the revolution less violent and may even abstain from overthrowing the current government to prevent losing their money and interest on bonds. Since the bonds are widely held, there is less money in circulation as the government acquired loans from their citizens to finance investment projects like infrastructure. In this scenario, the public may engage in a less violent revolution since their money is held by the government and in case it happens, the government will be the one that will benefit since it has spent most of the money of investment projects. This will make the economy to be at stake since the amount of money in circulation is less thus the spending rate of a country’s citizens may have reduced. In general, a less violent revolution is likely to occur since the government holds the money of the citizens and they are therefore afraid that they would lose both their money and the interest payments (Sloman, & Sutcliffe, 2003).
Question 2
A congressional oversight relates to the review, control, supervision, and monitoring of federal agencies, activities, or programs and implementation of policies and procedures. I believe that the federal agencies should be subject to a congressional oversight so that the government can control their operations. Relaxing supervision of the day-to-day activities of the federal agencies is likely to lead to misappropriation of cash and assets leading to a degradation of the country's economy. I believe Congress should review the operations of federal agencies. The body must also ensure that they follow the policies and procedures implemented. Corruption is likely to cause errors and fraud in the federal agency. A Congress must oversee the operations of the federal agencies and ensure that the internal control system implemented is working properly. A stable system is likely to prevent and detect errors and fraud within the federal agencies. A weak internal control system suggests that management of the federal agencies is not acting out of integrity, and that unusual transactions may have taken place within the organizations. It also implies that chances of errors and frauds occurring are very high, and management might be circumventing the controls put in place. It is, therefore, the mandate of these federal agencies to perform an internal audit function or department to review their o...