Asked by Efrain Lomeli on Jun 18, 2024
Verified
The Federal Reserve Board of Governors
A) will lower the discount rate to restrict monetary growth.
B) are appointed by the president for seven-year terms.
C) is basically independent.
D) serve at the pleasure of the president,who can force their resignations at any time.
Discount Rate
The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.
Board Of Governors
A governing body, often at the top of an organization, responsible for overseeing the administration and policy-making of the entity.
Monetary Growth
The increase in the money supply in an economy over time, which can influence inflation rates, purchasing power, and economic growth.
- Understand the purposes and duties of the Federal Reserve system.
Verified Answer
YC
Yolanda CrosbyJun 20, 2024
Final Answer :
C
Explanation :
The Federal Reserve Board of Governors is basically independent, meaning they have some degree of independence from political influence in making their decisions. They are appointed by the President and confirmed by the Senate for 14-year terms, but they can only be removed for cause. The Fed's decisions on monetary policy, such as setting interest rates and controlling the money supply, have significant impacts on the economy and are intended to be made in the best interest of the country rather than political interests.
Learning Objectives
- Understand the purposes and duties of the Federal Reserve system.