For how many years does a Federal Reserve governor serve on a term?

Refer to Figure 10.1. If two lights are installed, the people who were responsible for the light being installed each receive a payoff of

A) 2. B) 4. C) 6. D) 8.

One method used by the Federal Reserve to prevent abuse of the discount facility is

A) higher bank taxes. B) higher reserve requirements. C) tighter bank surveillance. D) selling fewer government securities to the banks involved.