Question

Which of the following statements regarding Federal Reserve independence is​ incorrect?

A. The Fed may feel pressure to support the​ president's policies since the president can veto legislation that might limit the​ Fed's discretionary power and authority
B. The Board of Governors knows that their bureaucratic power can be reined in by congressional legislation and so must still curry favour with both Congress and the president
C. In order to gain additional power to regulate the financial​ system, the governors need the support of Congress and the president to pass favourable legislation
D. The​ 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure

Answer 1

The correct answer is option D

D. The​ 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure

Explanation: Option D is incorrect regarding federal reserve independence.