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The following questions concern the Fed's Board of Governors:

A) Board of Governors members serve for fourteen years. How does each member get their job?

a) Nominated by the President and confirmed by the Senate
b) Appointed by the Chairman of the Federal Reserve
c) Elected by the member banks of the Federal Reserve
d) Chosen by a random lottery system

1 Answer

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Final answer:

Members of the Federal Reserve's Board of Governors serve for fourteen years, and they are nominated by the President and confirmed by the Senate. The long term is crucial for maintaining the board's independence and ensuring policy decisions are made based on economic merits.

Step-by-step explanation:

Members of the Federal Reserve's Board of Governors serve for fourteen years, which is a longer term compared to elected officials. They get their job by being nominated by the President of the United States and confirmed by the Senate. The extended tenure is instrumental in maintaining independence from political pressure, which allows for policy decisions that are based solely on economic merits without the influence of the shifting political landscape. This structure is designed to sustain a stable monetary policy environment.

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