Tackle the Test: Free-Response Questions

1. Question

   
   

   1. What group determines monetary policy?

      
      
   
   

   2. How many members serve in this group?

      
      
   
   

   3. Who always serves in this group?

      
      
   
   

   4. Who sometimes serves in this group? Explain.

      
      
   
   

   Rubric for FRQ 1 (5 points)

   1 point: The Federal Open Market Committee (FOMC)

   1 point: 12

   1 point: Members of the Board of Governors and the New York Federal Reserve Bank president

   1 point: 4 of the other 11 Federal Reserve Bank presidents

   1 point: The 11 other Federal Reserve Bank presidents rotate their service on the FOMC.

2. Question

   
   

   1. What does the Board of Governors of the Federal Reserve System do?

      
      
   
   

   2. How many members serve on the group?

      
      
   
   

   3. Who appoints members?

      
      
   
   

   4. How long do members serve?

      
      
   
   

   5. Why do they serve a term of this length?

      
      
   
   

   6. How long does the chair serve? (6 points)

      
      
   
   

   Rubric for FRQ 2 (6 points)

   1 point: Oversees the Federal Reserve System andserves on the Federal Open Market Committee.

   1 point: 7

   1 point: The president of the United States

   1 point: 14-year terms

   1 point: To insulate appointees from political pressure

   1 point: 4 years; may be reappointed