ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.

Detailed explanation-3: -National Bank A Commercial Bank whose charter is approved by the Office of the Comptroller of the Currency (OCC) rather than by a State Banking Department. National Banks are required to be members of the Federal Reserve System and belong to the Federal Deposit Insurance Corporation.

Detailed explanation-4: -National banks must be members of the Federal Reserve System; however, they are regulated by the Office of the Comptroller of the Currency (OCC). The Federal Reserve supervises and regulates many large banking institutions because it is the federal regulator for bank holding companies (BHCs).