The Members of the Federal Reserve Board

question 157

Multiple Choice

The members of the Federal Reserve Board

• A) serve seven-year terms.
• B) are appointed by the American Economic Association.
• C) are elected by votes of the 12 presidents of the Federal Reserve Banks.
• D) are appointed for 14-year terms.

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Definitions:

Real Gross Domestic Product

The total value of all goods and services produced within a country in a specific period, adjusted for inflation, indicating the actual growth of an economy.

Intrinsic Value

The actual, fundamental value of an asset, irrespective of its market value, determined through objective calculation or estimation.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Projects

Planned sets of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.