The Federal Reserve System is made up of twelve regional banks owned by
A) commercial banks in the respective districts that have chosen to be members of the Fed.
B) Wall Street investors.
C) the Board of Governors appointed by the President.
D) the U.S. Treasury.

Question

Quizplus · Accepted Answer

The twelve regional banks are owned by commercial banks within their respective districts that have chosen to be a part of the Federal Reserve System. This ownership structure is unique in that it allows both private sector and government influence in the central banking system. The Board of Governors is appointed by the President and oversees the entire system, but they do not directly own the regional banks. The U.S. Treasury also plays a role in the system but does not own any of the regional banks. Wall Street investors may indirectly affect the Fed through their investments, but they do not own any part of the system.

The Federal Reserve System Is Made Up of Twelve Regional