ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The 12 Federal Reserve Banks and their 24 Branches are the operating arms of the Federal Reserve System.

Detailed explanation-2: -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.

Detailed explanation-3: -The Fed’s structure was established in the Federal Reserve Act of 1913. As shown in the map below, the System has 12 regional banks that are named after the city in which the bank’s head office is located. The banks are overseen by the Fed’s Board of Governors in Washington, D.C.

Detailed explanation-4: -The Federal Reserve System consists of twelve districts each responsible for a geographic area of the country. The Federal Reserve officially identifies its Districts by number and city in which its head office is located.

Detailed explanation-5: -The Federal Reserve System is not “owned” by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation’s central bank. The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress.