There are (5/7/12) members of the Fed Reserve Board of Govenors. Which of the fo

Question

There are (5/7/12) members of the Fed Reserve Board of Govenors.

Which of the following contributes to making the Federal Reserve an independent policymaking body?

__ There are 12 Federal Reserve banks.

__ Members of the Board of Governors are appointed for 14-year terms.

__ Its role is written into the U.S. Constitution.

The Federal Reserve's primary tool for changing the money supply is the (discount rate / open market operation/ reserve requirement). In order to increase the number of dollars in the U.S. economy (the money supply), the Federal Reserve will (buy/sell) government bonds.

Explanation / Answer

Members of the Board of Governors are appointed for 14-year terms.

This makes them less sensitive to political changes or election cycle.

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