Each Member of the Board of Governors of the Fed

question 37

Multiple Choice

Each member of the Board of Governors of the Fed _____

• A) is from the minority of the FOMC.
• B) can have twelve presidential appointments.
• C) is authorized to set reserve requirements by the Bank Acts of 1933 and 1935.
• D) serves one nonrenewable term.
• E) is elected by the member banks that own the Federal Reserve.

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Definitions:

Time Period Assumption

an accounting principle that divides an enterprise's life into small periods of time for reporting and analysis purposes.

Economic Life

The expected period over which an asset remains useful to the owner or until it can generate economic benefits.

Artificial Time Periods

Divisions of time, not naturally occurring, created for the purpose of financial reporting, budgeting, or project scheduling.

Economic Entity Assumption

An accounting principle that treats a company as a separate entity from its owners or shareholders for financial reporting purposes.