Describe the function and structure of the board of governors of the federal reserve system.
Answer: At the head of the federal Reserve System is the seven-member Board of Governors,
headquartered in Washington D.C. Each governor is appointed by the president of the U.S. and
confirmed by the Senate. The governors can serve one nonrenewable 14-year term plus part of
another term, with one governor's term expiring every other January. The chairman of the Board
of Governors is chosen from among the seven governors and serves a 4-year term.
Diff: 2 Type: SA Page Ref: 366 - 367
Skill: Recall
Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
specify the arguments for and against an independent central bank
