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Glossary
Test Your Knowledge
True or False: The Board consists of nine members – called Governors.

A. True

B. False

True or False: Governors are appointed by the President of the United States and confirmed by the Supreme Court.

A. True

B. False

True or False: A Governor's term is 14 years.

A. True

B. False

True or False: One member of the Board of Governors is appointed by the president to serve a four-year term as chair.

A. True

B. False



Why are the Governors' terms staggered?
Type Your Response Here

Correct Response:

Question: 1—2—3



Discussion Board Topic: About the Board of Governors

Use what you have learned in this lesson to write a summary paragraph. Your paragraph should explain:

  • How the members of the Board of Governors are appointed.
  • How the terms of the Board of Governors are structured to provide stability, continuity and political independence.

Record your summary by clicking on the discussion board and responding to the thread titled "About the Board of Governors."

Conclusion

As the Federal Reserve's centralized component, the seven members of the Board of Governors guide the Federal Reserve's policy actions, study trends in the economy and help forecast the country's future economic direction. The Governors also participate in monetary policymaking on the Federal Open Market Committee, or FOMC. In addition, the Board of Governors is responsible for regulations to keep the banking system sound and for overseeing the operations of the 12 Reserve Banks. In a later section, you will learn how the Reserve Banks supervise their member banks to ensure they comply with these regulations.