Question

How so member banks of the federal reserve differ from other depositary institutions?

A. They participate in the federal open market committee.
B. They receive services from the regional federal reserve bank.
C. They are stockholders in their regional federal reserve bank.
D. They are subject to the banking regulations issued by the federal reserve.

Answer 1

C. They are stockholders in their regional Federal Reserve Bank.

Step-by-step explanation:

United States have 12 Federal reserve banks that are spread out throughout the regions in United States. These banks were organized like corporations. Member of the banks were elected by the presidents and confirmed by the senate. These members act like some sort of shareholders that have the power to choose the "Officers" that oversee all operations conducted by the banks.

Depositary institutions are the institutions that are legally allowed to accept deposits from consumers. They follow the regulations from the Federal Bank, but they do not have the power to make any form of control or changes within the Federal Reserve.