Chapter 27, Problem 6MCQ

To determine

The question is asking us to choose the correct answer from the given options regarding the functions and structure of the Federal Reserve system.

Explanation of Solution

The Federal Reserve can be understood as somewhat decentralized, in contrast to other central banks. A Governing board, composed of seven representatives chosen by the President of the country U and then affirmed by the Senators, oversees operations at the federal level. One seat expires on January 31 of every even-numbered year, and appointments are made for 14-year periods. The long, as well as staggered mandates, are designed to shield the Board of Governors from government pressure as far as practicable, allowing them to make judgments about public policy solely based on their economic considerations.

Thus, from the above, we can conclude that the correct option is C.