Which of following policies of the Congress was aimed to place the Fed above politics and maintain continuity in the policymaking process?
A)The President elects the entire Board of Governors.
B)The Federal Reserve district banks elects the Board of Governors.
C)The Congress elects a board member every five years.
D)One board member's term expires every second year.
E)Only bankers are allowed to be appointed as board members.

Question

Quizplus · Accepted Answer

The policy of having one board member's term expire every second year is aimed at maintaining continuity in the policymaking process and placing the Fed above politics. This staggered arrangement of terms ensures that the entire Board of Governors is not subject to political pressure or influence from any particular administration or Congress, as only one or two members are replaced at a time, and their replacements are appointed by the President and confirmed by the Senate, ensuring a degree of independence and continuity in the policymaking process.

Which of Following Policies of the Congress Was Aimed to Place