Question

Describe the organizational structure of the federal reserve system.

Answer 1

Organizational structure of the federal reserve system

Federal Bank or the central bank in America has 3 primary functions which include regulating the monetary policy, supervision of banking system and providing financial services.

Level 1(Topmost) : Federal Bank has Board of Directors at the Apex(7 member board including Chairman, Appointed by US President with senate confirmation )

Level 2 : Followed by Federal Reserve banks ( With 9 directors each)

Level 3 : Includes member banks and other depository institutions

Level 4 : Lastly the American population at the lowest end

Federal Open Market Committee includes Board of Governors and 5 reserve bank presidents.