ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Federal Reserve System (Fed) privately owned, publicly controlled, central bank of the United. States. Federal Reserve notes paper currency issued by the Fed that eventually replaced all other types.

Detailed explanation-2: -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-3: -Myth: Private sector banks own the Fed Some observers mistakenly consider the Federal Reserve to be a private entity because the Federal Reserve Banks are organized similarly to private corporations. In truth, the Fed is not “owned” by anyone.

Detailed explanation-4: -Central banks should always be kept public because they are always responsible for generating stability in the economy not making profits, so they should be trying to stabilize the economy under different economic situations.