ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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NO
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YES
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Either A or B
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None of the above
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Detailed explanation-1: -The Federal Reserve, unlike most central banks, is semi-decentralized. At the national level, it is run by a Board of Governors, consisting of seven members appointed by the President of the United States and confirmed by the Senate.
Detailed explanation-2: -The Fed has broad power to act to ensure financial stability, and it is the primary regulator of banks that are members of the Federal Reserve System. It acts as the lender of last resort to member institutions that have no other place from which to borrow.
Detailed explanation-3: -Membership in the Federal Reserve System is required for national banks and is optional for state banks. While many large state banks have become Fed members, most state banks have chosen not to join.
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.