ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In establishing the Federal Reserve System, the United States was divided geographically into 12 Districts, each with a separately incorporated Reserve Bank.

Detailed explanation-2: -The Reserve Banks are decentralized by design and are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.

Detailed explanation-3: -San Francisco is the headquarters of the Twelfth Federal Reserve District, which includes the nine western states-Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington-plus American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands.

Detailed explanation-4: -The FOMC consists of 12 voting members-the seven governors, the president of the Federal Reserve Bank of New York, and four of the 12 Reserve Bank presidents who serve one-year terms on a rotating basis.

Detailed explanation-5: -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.