ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Appointed by the Federal Open Market Committee
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Approved by the Senate after appointment by the President of the United States.
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The presidents of the regional reserve banks are appointed as the governors.
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Appointed by the people of the United States
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Detailed explanation-1: -The Board of Governors–located in Washington, D.C.–is the governing body of the Federal Reserve System . It is run by seven members, or “governors, ” who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate.
Detailed explanation-2: -The process for selecting a Federal Reserve Bank president is set forth in the Federal Reserve Act. Subject to the approval of the Federal Reserve Board of Governors, the president is appointed by the Reserve Bank’s Class B and C directors (those directors who are not affiliated with a supervised entity).
Detailed explanation-3: -The Boards of Governors consist of one Governor and one Alternate Governor appointed by each member country. The office is usually held by the country’s minister of finance, governor of its central bank, or a senior official of similar rank.
Detailed explanation-4: -The Board of Governors direct monetary policy and set the discount rate while the Federal Open Market Committee oversees open market operations and sets the target federal funds rate.
Detailed explanation-5: -The Fed has traditionally used three tools to conduct monetary policy: reserve requirements, the discount rate, and open market operations.