The Board of Governors of the Federal Reserve System Does

question 326

Multiple Choice

The Board of Governors of the Federal Reserve System does NOT

• A) consist of members whose appointments have been approved by the Senate.
• B) utilize a system of rotations so that a position comes open every two years.
• C) include the presidents of the twelve Federal Reserve Banks.
• D) consist of seven members with fourteen-year terms.

---

Definitions:

Discount

The excess of the face amount of bonds over their issue price or the excess of the par value of stock over its issue price.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its face value or par value.

Contract Rate

This term typically refers to the interest rate agreed upon in a financial or loan agreement.

Market Rate

The prevailing interest rate available in the marketplace on investments, loans, or savings.