Question

Indicate which group within the Federal Reserve System has responsibility for each action listed below,

a. Supervises and regulates member banks
b. Distributes coin and currency
c. Appointed by the president to serve 14 year terms
d. Oversees national banking and consumer credit regulation
e. Oversees the buying and selling of government securities as a form of monetary policy
f. Comprises the Board of Governors and five regional bank presidents
g. Provides information on regional economic conditions through the Beige Book report

WORD BANK
- Regional Federal Reserve District Banks
- Board of Governors of the Federal Reserve System
- Federal Open Market Committee

Answer 1

a. Regional Federal Reserve District Banks
b. Regional Federal Reserve District Banks
c. Board of Governors of the Federal Reserve System
d. Board of Governors of the Federal Reserve System
e. Federal Open Market Committee
f. Federal Open Market Committee
g. Regional Federal Reserve District Banks

The 12 regional Federal Reserve District Banks are responsible for supervising and regulating the member banks within their districts, distributing coin and currency, and providing information on current regional economic conditions to the Board of Governors and the Federal Open Market Committee, or FOMC.

The Board of Governors consists of seven members, with each member appointed to a 14 year term by the president. The Board of Governors is responsible for the oversight of the banking industry in general, as well as consumer credit regulations.

The Federal Open Market Committee, or FOMC, is responsible for open market operations, the main tool of monetary policy. The FOMC is comprised of the seven members of the Board of Governors, as well as five presidents of the various regional Fed banks.