Asked by Nacole Watkins on Jul 07, 2024
Verified
The Federal Reserve District Banks are owned by
A) the federal government.
B) a combination of state governments and the federal government.
C) the board of governors.
D) their member banks.
Federal Reserve District Banks
Regional banks making up the Federal Reserve System, responsible for implementing monetary policy and banking regulations in their respective districts.
Member Banks
Banks that are part of a central bank system like the Federal Reserve System in the United States and are subject to its regulations and have access to its services.
- Explain the role and functions of the Federal Reserve System and its structure, including the Federal Reserve District Banks.
Verified Answer
IL
Isabel LopezJul 10, 2024
Final Answer :
D
Explanation :
The Federal Reserve District Banks are owned by their member banks, which include all national banks and some state-chartered banks. The member banks elect six directors for each district bank, while the Board of Governors in Washington, D.C. appoints three directors. This ownership structure was established by Congress in the Federal Reserve Act of 1913.
Learning Objectives
- Explain the role and functions of the Federal Reserve System and its structure, including the Federal Reserve District Banks.