ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is divided into 8 districts with onebank over all districts.
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It is divided into 10 districts with abanking committee over eachdistrict.
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It is divided into 12 districts withone bank over each district.
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It is divided into 50 districts andheaded by each state governor.
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Detailed explanation-1: -There are three key entities in the Federal Reserve System: the Board of Governors, the Federal Reserve Banks (Reserve Banks), and the Federal Open Market Committee (FOMC).
Detailed explanation-2: -The quick answer to your first question is that the Districts were designed to provide central banking services on a regional basis through Reserve Banks headquartered in key financial centers. Even when they were set up in 1913, the Districts varied widely in the population and geographic areas they served.
Detailed explanation-3: -The Reserve Banks are decentralized by design and are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.