ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Board of Governors–located in Washington, D.C.–is the governing body of the Federal Reserve System. It is run by seven members, or “governors, ” who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate.

Detailed explanation-2: -Supervisory Agencies The Fed supervises several kinds of institutions. It supervises bank and financial holding companies (the companies that own banks and other financial operating units), including savings and loan holding companies (the companies that own thrifts or savings banks).

Detailed explanation-3: -Institution Supervision The Federal Reserve is responsible for supervising–monitoring, inspecting, and examining–certain financial institutions to ensure that they comply with rules and regulations, and that they operate in a safe and sound manner.

Detailed explanation-4: -The Division of Supervision and Regulation exercises and oversees the Board’s supervisory and regulatory authority over a variety of financial institutions and activities with the goal of promoting a safe, sound, and stable financial system that supports the growth and stability of the U.S. economy.