ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Assists the U.S. Treasury by distributing currency, provides overnight loans to commercial banks, and processes electronic payments.
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Handle all deposits made by federal employees.
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Store 1/12 of the gold used to support the value of the the U.S. dollar.
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Visit other countries to study their banking system looking for opportunities to improve.
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Detailed explanation-1: -Each of the 12 Federal Reserve Banks serves its geographic district in various ways, including, but not limited to, distributing paper currency and coins, processing automated electronic payments and monitoring commercial banks to ensure compliance with regulations and banking practices.
Detailed explanation-2: -Federal Advisory Council (FAC). This council, established by the Federal Reserve Act, comprises 12 representatives of the banking industry.
Detailed explanation-3: -The Federal Reserve system was set up with 12 regional banks due to traditional American hostility to centralized authority and central bank, such a system was setup to diffuse the power and distribute it much more evenly. Reserve Banks are the working arms of the national bank.
Detailed explanation-4: -FEDERAL RESERVE BANKS are the operating arms of the Federal Reserve System and are supervised by the Board of Governors. FEDERAL OPEN MARKET COMMITTEE consists of the members of the Board of Governors and Reserve Bank presidents. The Chair of the Board is the FOMC Chair.