Each regional Federal Reserve Bank is owned by
A) the member banks in its district.
B) the Federal Deposit Insurance Corporation.
C) those who purchase its stock on the open market.
D) the taxpayers in its district.

Question

Quizplus · Accepted Answer

Each regional Federal Reserve Bank is owned by the member banks in its district. This ownership structure is meant to ensure that the Federal Reserve Banks are independent and serve the interests of their regions, rather than being controlled by the federal government or any particular interest group. The member banks do not hold any ownership stake in the Board of Governors, which is responsible for setting monetary policy and overseeing the Federal Reserve System as a whole.

Each Regional Federal Reserve Bank Is Owned by