Which of the following is NOT true about the Federal Reserve System? a. Terms of

Question

Which of the following is NOT true about the Federal Reserve System?

a. Terms of service of the members of the Board of Governors are longer than the number of years that a two term President of the United States would serve.

b. The Federal Reserve System is the nation's central bank and is comprised of 12 Federal Reserve Banks that serve as bankers' banks.

c. Some of the main functions of the Federal Reserve System include the authority to control the money supply, to issue currency, to set reserve requirements and to hold reserves.

d. While Congress controls the actions of the Federal Reserve,the President has the authority to appoint and remove private banks from the Federal Reserve System.

Explanation / Answer

"D"

All the banks are part of the Federal Reserve system and they can't be removed no matter what. Fed authorizes the functioning and terms under which the firms function. President has no say in it.

All the other statements are correct.

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