Asked by Inderpreet Bains on Jun 29, 2024
Verified
Which statement is true?
A) The chairman of the Federal Reserve Board is appointed to that position for one 14-year term.
B) The chairman may be fired at any time by the President.
C) Most presidents get to appoint all the members of the Federal Reserve Board.
D) None of the statements are true.
Federal Reserve Board
The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system and setting monetary policy.
Chairman
A person appointed or elected to preside over a meeting, board, or committee.
President
The head of state and head of government in a republic, typically elected to lead the country's executive branch and implement national laws and policies.
- Discern the elements and tasks of the Federal Open Market Committee (FOMC) and the Board of Governors.
Verified Answer
VP
Vivek PatelJul 05, 2024
Final Answer :
D
Explanation :
All three statements are incorrect. The Chairman of the Federal Reserve Board serves for a four-year renewable term, not a 14-year term. The Chairman may be removed only for cause and not at the discretion of the President. While the President does appoint the members of the Board of Governors, only the Chairman and the Vice Chairman are appointed by the President and confirmed by the Senate. The other members are appointed by the Federal Reserve Banks.
Learning Objectives
- Discern the elements and tasks of the Federal Open Market Committee (FOMC) and the Board of Governors.