If a Member of the Board of Governors Is Limited

question 60

Multiple Choice

If a member of the Board of Governors is limited to one 14-year term,how did Alan Greenspan serve 19 years on the Board of Governors?

• A) A special exemption was approved for him.
• B) The rule was not in place at the time.
• C) He completed the remaining years left on someone else's term and then served one 14-year term.
• D) He didn't serve consecutive terms.

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Definitions:

Comparative Advantage

The potential of an individual, enterprise, or country to offer a product or service with a more favorable opportunity cost than that available to its competitors.

Financial Cost

The total expenses incurred by a company in borrowing money, including interest payments, fees, and other charges.

Bowed-Out

Describes a production possibilities curve that is concave from the origin, indicating increasing opportunity costs.

Opportunity Costs

The cost associated with an alternative that is foregone when a particular decision or action is taken.