Question

(6)The Board of Governors (also called the Federal Reserve Board) consists of seven members appointed to 14-year terms by the President with the approval of the U.S. Senate: T or F? (7) The four-year term of the chairperson of the Board of Governors begins and ends with the President term: T or F? (8) The Federal Open Market Committee (FOMC) consists of 12 members, seven of whom are the members of the Board of Governors, and the remaining five members are selected from among bankers, professional economists, and the public: T or F? (9) There are 12 Federal Reserve Banks, and each of the Federal Reserve Banks is a quasi-public (part private and part government) institution owned by the private commercial banks in the district that are members of the Federal Reserve System: T or F? (10) Currently about a half of the commercial banks in the United States are the members of the Federal Reserve System: T or F?

Answer 1

6. True. The Board of Governors has 7 members and each memeber is appointed for 14 year term by the President with the approval of the US Senate.

7. False. It is not necessary that the four year term of the chairperson of the Board of Governors begins and ends with the term of the President.

8.False. The FOMC has 12 members- seven of whom are the members of the Board of Governors, President of the Federal Reserve Bank of New York, and four of the remaning 11 reserve Bank Presidents.

9.True.There are 12 Federal Reserve Banks, and each of the Federal Reserve Banks is a quasi-public institution owned by the private commercial banks in the district that are members of the Federal Reserve System.

10.False. Approximately 34 per cent of the commercial babks in the United States are the members of the Federal Reserve System.