Final answer:
True, the Federal Reserve is the central bank of the United States, established in 1913 with a semi-decentralized structure. It conducts monetary policy, regulates the banking industry, and works to stabilize the nation's monetary system.
Step-by-step explanation:
The statement 'The Federal Reserve (Fed) is the central bank of the United States' is true. The Federal Reserve System, often abbreviated as just 'the Fed,' was established in 1913 and functions as the central bank for the United States. Its structure is unique in that it is semi-decentralized, blending public-sector regulation with private bank ownership.
The Board of Governors, which oversees the Fed, consists of seven members appointed by the President and confirmed by the Senate for 14-year terms. These staggered terms are designed to protect the Board from excessive political pressure, allowing them to make decisions based on economic considerations.
Among the key responsibilities of the Federal Reserve are conducting monetary policy, regulating the banking industry, maintaining the payment system, and ensuring consumer protection. The Federal Open Market Committee (FOMC) is pivotal in making decisions about the money supply, aiming to stabilize and strengthen the nation's monetary system.