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: -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-3: -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.

Detailed explanation-4: -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.

Detailed explanation-5: -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.