16.1+Questions

1. The Board of Governors are appointed by the President of the United States and serve 14 year staggered terms. They are approved by the senate. 2. Monetary Policy refers to the actions the fed takes to influence the level of real GDP and the rate of inflation of the economy. 3. The Federal Reserve Act divided the U.S. into 12 Federal Reserve districts. One bank is located in each of the twelve districts. 4. They collect information about each district and report to the Board of Governors about economic conditions within their district. 5. The FOMC makes key decisions about interest rates and the growth of the United States money supply. 6. We are a free enterprise because we allow people to bank without many restrictions.