Question

Although the members of the Board of Governors of the Federal Reserve System are appointed by the president, the Board does not receive funding from Congress. The seven members serve a 14 year term, and report to the Speaker of the House once a year. This MOST LIKELY results in __________ of the Federal Reserve System.

Answer 1

Answer:

relative independence

Explanation:

A relative independence of the federal reserve system occur when members of the Board of Governors of the Federal Reserve System report to the speaker of the House once a year and not the president who appointed the members.

A Federal Reserve System is categorized as an autonomous central bank because it's monetary policy doesn't require the approval of either the President, Executive or the Legislative arm of government

The Federal Reserve System which is also refer to as the Fed was founded on December 23, 1913 from the enacted of the Federal Reserve Act.

Their primary objectives are:

1) Maximizing employment

2) Stabilizing prices

3) Stabilizing and moderating of long term interest rate.