Question

Describe the overall structure of the U.S. Federal Reserve System. Provide 3 characteristics of the Fed in your response. An example of one of the many characteristics is that the Fed was created under the Federal Reserve Act of 1913. This is what I am looking for (simple and basic fact) but please do not use this one (1913) anymore........ Be creative on your own answers.

Answer 1

Federal Reserve system(Fed) was created by the Congress to eliminate the severe financial crisis that had periodically swept the nation , especially the sort of financial panic that occurred in 1907.Federal reserve system is aims to ensure a stable economy for the United States of America.

Federal Reserve system has a decentralised structure. Federal reserve system is composed of the board of governors, Federal Reserve districts , member Banks and Federal Open Market Committee.

> The board of governors

The Federal Reserve system is overseen by a 7 member Board of Governors . They are appointed by the president form of the United States for a 14 year term ,subject to confirmation by the US Senate. The chair of board of Governors of the Federal Reserve system is the head of Federal Reserve. Present " chair of the fed " is Jerome Powell.

> Federal reserve districts

There are 12 federal reserve districts under the federal reserve system. These federal reserve districts are Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, Newyork, Philadelphia, Richmond,San Francisco and StLouis. Each federal reserve reserve district has its own Federal Reserve Bank.

> Member banks

A member bank is a commercial bank that is a part of the federal reserve system. These banks maintain reserve deposits in the Federal Reserve Bank in their federal reserve district.

> Federal open market committee (FOMC)

Its the policy making body for open market operations or its the monetary policy making body of the federal reserve system. FOMC consists of 12 members. FOMC meets eight times a year in Washington DC.

Infact,three key entities of the unique structure of federal reserve system are Board of Governors , the Federal open market committee and12 federal reserve Banks .