Federal Reserve System Structure and Governance

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Questions and Answers

How many members are appointed by the President of the United States and confirmed by the Senate?

Seven

What is the total number of member commercial banks in the Federal Reserve System?

Around 3,000

How many members are on the Federal Advisory Council?

Twelve

What is the primary tool used by the Federal Reserve to set monetary policy?

Open market operations Signup and view all the answers

Which Federal Reserve Bank is the sole U.S. member of the Bank for International Settlements?

FRB of New York Signup and view all the answers

How many Federal Reserve Banks are there in the United States?

Twelve Signup and view all the answers

What is the primary function of the Federal Reserve districts?

To administer and make discount loans to banks in their districts Signup and view all the answers

How often does the FOMC meet to decide on key agenda items?

8 times yearly Signup and view all the answers

What is the role of the Chairman of the Board of Governors in the FOMC?

To chair the FOMC meetings Signup and view all the answers

What is the characteristic of Bernanke and Yellen's FOMC meetings compared to Greenspan's?

More informal and clear Signup and view all the answers

What is the nature of the Federal Reserve's independence?

Both goal and instrumental independence Signup and view all the answers

What is Alan Greenspan's philosophical perspective?

Laissez-faire capitalism Signup and view all the answers

What is the primary role of the Chair in the Federal Reserve?

To guide policy discussions and communications Signup and view all the answers

What is a benefit of the non-renewable 14-year terms of Federal Reserve Board members?

Enabling decisions in the public's best interest without short-term political influence Signup and view all the answers

What is the term of the President and Vice President of the European Central Bank?

8 years Signup and view all the answers

What is a key difference between the decision-making process of the Federal Reserve and the European Central Bank?

The European Central Bank makes decisions by consensus, not voting Signup and view all the answers

What has been a criticism of the Federal Reserve's management of the US economy?

Inconsistent performance, with mistakes made during the Great Depression and periods of high inflation Signup and view all the answers

How are the directors of the Bank of Canada appointed?

By the government for a 3-year term Signup and view all the answers

What has been a trend in the Federal Reserve's communications in recent years?

Movement towards greater transparency Signup and view all the answers

What is a concern about the Federal Reserve's independence?

Lack of democratic legitimacy Signup and view all the answers

What is a unique feature of the European Central Bank's independence?

It is considered the most independent central bank by treaty Signup and view all the answers

Who is the current Chair of the Board of Governors of the Federal Reserve System?

Jerome Powell Signup and view all the answers

What is the role of the regional Federal Reserve Bank presidents in the policymaking process?

They participate in policy discussions and several rotate voting rights Signup and view all the answers

What is a potential risk of the Federal Reserve's independence?

Political influence on the Fed's decisions Signup and view all the answers

When did the Bank of England gain independence?

1997 Signup and view all the answers

How many non-executive directors are on the Court of the Bank of England?

16 Signup and view all the answers

What is the primary responsibility of the Monetary Policy Committee?

Setting interest rates Signup and view all the answers

In which year was the Bank of Japan founded?

1882 Signup and view all the answers

What is a limitation of central bank independence in practice?

Government appointments Signup and view all the answers

What has been a global trend in central banking?

Moving towards greater independence Signup and view all the answers

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