The Fed remains largely independent from politics for all of the following reasons EXCEPT
a)the Fed is privately owned by its member banks.
b)the president and Congress appoint new members to vacant seats on the Board of Governors.
c)members of the Board of Governors serve 14-year terms.
d)the Fed sets interest rates with an eye toward the long-term health of the economy.

Please help as soon as possible! :)

Question

The Fed remains largely independent from politics for all of the following reasons EXCEPT
a)the Fed is privately owned by its member banks.
b)the president and Congress appoint new members to vacant seats on the Board of Governors.
c)members of the Board of Governors serve 14-year terms.
d)the Fed sets interest rates with an eye toward the long-term health of the economy.

Please help as soon as possible! :)

anonymous · Answer

Definitely A. The Fed is a mixed enterprise - part of it is public, part of it is private.

"The Federal Reserve System fulfills its public mission as an independent entity within government.  It is not "owned" by anyone and is not a private, profit-making institution. 
The 12 regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized similarly to private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year. "

www.federalreserve.gov/faqs/about_14986.htm