ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In establishing the Federal Reserve System, the United States was divided geographically into 12 Districts, each with a separately incorporated Reserve Bank.

Detailed explanation-2: -The FOMC consists of 12 voting members-the seven governors, the president of the Federal Reserve Bank of New York, and four of the 12 Reserve Bank presidents who serve one-year terms on a rotating basis.

Detailed explanation-3: -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-4: -The Federal Reserve System has 12 Districts, each served by an independently chartered regional Reserve Bank. These Banks are in Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New York, Philadelphia, Richmond, St. Louis and San Francisco.

Detailed explanation-5: -The New York Federal Reserve district is the largest by asset value. San Francisco, followed by Kansas City and Minneapolis, represent the largest geographical districts.