To reduce political pressures on the Federal Reserve Board of Governors, legislation provided that

Question

Quizplus · Accepted Answer

The correct answer is D because the Federal Reserve Act provides for staggered six-year terms for the seven members of the Board of Governors, so one member's term expires every second year. This helps to prevent political pressures by ensuring that the entire board cannot be replaced by a single president or Congress at one time. The members of the Board of Governors are appointed by the president and confirmed by the Senate, so they are subject to political influence, but the staggered terms help to reduce this influence.

To Reduce Political Pressures on the Federal Reserve Board of Governors