Question

46. The Board of Governors of the Federal Reserve System are appointed by ____________ to serve _____________ terms.

A. the Senate; 10 year
B. the House of Representatives; 8 year
C. the President; 14 year
D. the Secretary of the Treasury; 6 year

Answer 1

The Board of Governors of the Federal Reserve System are appointed by the President to serve 14-year terms, providing stability and insulating policy decisions from political pressure.

Step-by-step explanation:

The members of the Board of Governors of the Federal Reserve System are appointed by the President of the United States to serve 14-year terms. This structure is in place to ensure that the Board of Governors is insulated as much as possible from political pressure. The staggered terms allow for policy decisions to be made based on economic merits rather than political influence.

It is crucial for the members of the Board of Governors to have longer terms than elected officials, like the President, to provide stability and continuity in monetary policy, which is vital for economic planning and preventing undue influence from short-term political considerations.