The following are two hypothetical ways in which the Federal Reserve Board might be appointed. Would you favor either of these two methods over the present method? Why or why not?
a. Upon taking office, the U.S. president appoints seven people to the Federal Reserve Board, including a chair. Each appointee must be confirmed by a majority vote of the Senate, and each serves the same 4-year term as the president.
b. Congress selects seven members from its ranks (four from the House of Representatives and three from the Senate) to serve at Congressional pleasure as the Board of Governors of the Federal Reserve System.
8. What is meant when economists say that the Federal Reserve Banks are central banks, quasi-public banks, and bankers’ banks?
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