Why are members of the Board of Governors appointed to serve 14year terms that are staggered, with one expiring every 2 years?
A) To prevent stagnant and outdated decision making and encourage new approaches and fresh ideas from the Board of Governors
B) To prevent any single president from appointing all of the members, thereby ensuring that the Fed can act independently of political pressure
C) To ensure that there are experienced members during all economic cycles and climates
D) To ensure that all members are automatically eligible to run for the Chairmanship of the Federal reserve after serving 14 years

Question

Why are members of the Board of Governors appointed to serve 14­year terms that are staggered, with one expiring every 2 years?
A) To prevent stagnant and outdated decision making and encourage new approaches and fresh ideas from the Board of Governors
B) To prevent any single president from appointing all of the members, thereby ensuring that the Fed can act independently of political pressure
C) To ensure that there are experienced members during all economic cycles and climates
D) To ensure that all members are automatically eligible to run for the Chairmanship of the Federal reserve after serving 14 years

Quizplus · Accepted Answer

Staggering the terms and appointing Board of Governors members for 14-year terms ensures that no single president can appoint all the members, which helps maintain the Fed's independence from political pressure. This is important for maintaining the Fed's ability to make decisions based on economic considerations rather than political considerations.

Why Are Members of the Board of Governors Appointed to Serve