When Congress passed the Federal ReserveAct of 1913, it gave the Federal Reserve Board afree hand in steering the economy. (2) The President, while charged with appointing the chair and board members, has no direct role to play in the Board’s policy decisions. (3) One of the most obvious conflicts between the Board and the Chief Executive occurred in 1980, while then-President Carter was in the midst of his reelection campaign. (4) Six weeks before Election Day, the Board increased the discount rate, the fee charged for loans to banks and savings institutions. (5) The predictable backlash against the move may well have been the final nail in Carter’s political coffin.

n revising the paragraph above, you decide that you want to add the following sentence: “Over the years, the freedom from presidential influence has led to numerous conflicts between the political goals of the White House and the economic goals of the Board.” The best place to insert this sentence is

A) before sentence 1

B) between sentences 1 and 2

C) between setences 2 and 3 (x)

D) after sentence 5

2) Which of the following is the best revision of sentence 5?

A) The predictable fallout from the move may well have been the final nail in Carter’s political coffin.

B) The predictable reaction against (x)the move may well have driven the final nail into Carter’s political coffin.

C) The predictable backlash against the move may well have destroyed Carter’s political coffin.

I assume you've chosen C for the first question and B for the second. I agree -- those are the best choices. :-)

To add the sentence "Over the years, the freedom from presidential influence has led to numerous conflicts between the political goals of the White House and the economic goals of the Board," the best place to insert this sentence is between sentences 2 and 3.

This placement allows the sentence to provide an introductory statement before the paragraph goes on to explain a specific conflict that occurred between the Board and the Chief Executive in 1980.

Regarding the second question, the best revision of sentence 5 would be:

B) The predictable reaction against the move may well have driven the final nail into Carter’s political coffin.

This revision improves the sentence by using a more active verb "driven" instead of "fallout" and maintaining the metaphor of "driving the final nail into Carter's political coffin" which signifies the significant negative impact on his political prospects.