Author Question: Who runs the Federal Reserve System? Describe the organizational structure of the ... (Read 38 times)

jwb375 · **on:** Jun 30, 2018

Who runs the Federal Reserve System? Describe the organizational structure of the Fed.

Question 2

Which of the following is a problem when comparing GDPs per capita between nations?
a. GDP per capita fails to measure income distribution.
b. Fluctuations in exchange rates affect differences in GDP per capita.
c. GDP per capita is subject to greater measurement errors for LDCs compared to IACs.
d. All of these.

lin77x · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The Fed is run by the Board of Governors. There are 7 members of the Board of Governors, each appointed by the President of the United States with the confirmation of the U.S. Senate for 14 year terms. The Board of Governors are aided in their policy making by the Federal Advisory Council which consists of 12 prominent bankers, each appointed by the Presidents of the 12 Federal Reserve Banks located around the country. The Fed's chief policy-making body is the Open Market Committee which consists of the 7 Board of Governors plus 5 Federal Reserve District bank presidents.

Answer to Question 2

d