ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Council of Economic Advisors.
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Board of Governors.
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Federal Open Market Committee.
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12 Federal Reserve District Banks.
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Detailed explanation-1: -In the given statement, the council of economic advisers is not a part of the federal reserve system as they cannot advise the federal banks on the monetary policies.
Detailed explanation-2: -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-3: -The Fed system consists of five components: (1) member banks, (2) Federal Reserve District Banks, (3) Board of Governors, (4) Federal Open Market Committee, and (5) advisory committees.
Detailed explanation-4: -The Federal Reserve Banks provide financial services to depository institutions including banks and credit unions, much like those that banks provide for their customers. These services include collecting checks, electronically transferring funds, and distributing and receiving cash and coin.