Question

Which of these statements is true of the board of governors of the Fed?

1) The board of governors consists of six members; the term length is four years.
2) The board of governors is elected once every eight years by the citizens of the United States.
3) The board of governors is appointed by the chair and serves a four-year term.
4) The board of governors consists of six members plus the chair; the term length for members is fourteen years.

Answer 1

The true statement regarding the Federal Reserve's Board of Governors is that it has seven members, appointed by the President and confirmed by the Senate, serving fourteen-year terms to ensure independence from political pressure. The correct answer is option C.

Step-by-step explanation:

The statement that is true of the Board of Governors of the Fed is this: 'The board of governors consists of seven members appointed by the President of the United States and confirmed by the Senate. Each governor serves a fourteen-year term.'

This correct information distinguishes itself from the other statements as follows: The Board of Governors does not consist of six members but rather seven, and the term length is not four years but fourteen years. They are appointed by the President and confirmed by the Senate, not elected by the citizens directly.

The Chair is also a member of this Board but has the role of controlling the agenda and being the public voice of the Fed with considerable influence.Having long terms from usual political cycles is crucial to maintaining independence from political pressure, allowing for economic policies to be based on their merits rather than political expediency. The correct answer is option C