Final answer:
The regional Federal Reserve banks are owned by the private banks that are members of the Federal Reserve System in each region. These banks elect a Board of Directors for their respective regional Federal Reserve bank. The correct answer is option: a) private banks which are part of the federal reserve system in each region.
Step-by-step explanation:
The regional Federal Reserve banks are unique entities in the U.S. financial system. Each of the 12 regional Federal Reserve banks is owned by the private banks within its region that are members of the Federal Reserve System. These member banks elect a Board of Directors for their regional Federal Reserve bank, and this board in turn chooses a president for the bank.
While the Federal Reserve System as a whole includes leaders appointed both federally and from the private sector, the ownership of the regional banks is specifically by the private sector member banks, and not by the state governments, the Federal Reserve System, or the federal government.
The Federal Reserve was established to serve multiple purposes, including being a bank for banks, regulating the banking industry, and influencing the money supply. It is a mix of private ownership and public control, and while it supervises financial institutions and conducts monetary policy, the regional banks themselves are owned by the member banks within their respective districts.