The Board of Governors

question 171

Multiple Choice

The Board of Governors

• A)composes a minority of the FOMC
• B)consists of twelve presidential appointees
• C)was authorized to set reserve requirements by the Bank Acts of 1933 and 1935
• D)serve four year terms
• E)are elected by the member banks which own the Federal Reserve

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Definitions:

Current Liability

Liabilities due within a short period, usually one year, that are to be paid with current assets.

Nearness to Maturity

The time remaining until a financial instrument reaches its specified maturity date, affecting its price and interest rate sensitivity.

Balance Sheet

A report detailing a firm's assets, liabilities, and owners' equity at a particular moment.

Order of Magnitude

A classification of scale or size of a quantity, where each class is ten times greater or smaller than the one before.