The capital stock of each Federal Reserve Bank A) is owned by the Board of Governors of the Fed. B) can be used in an emergency to provide funds for the Fed. C) is owned by members of the individual Federal Reserve Banks. D) has been reserved for purchase of the U.S. Treasury.

Question

Quizplus · Accepted Answer

The capital stock of each Federal Reserve Bank is owned by the member banks of that Federal Reserve District, not by the Board of Governors, the U.S. Treasury, or any other entity. Member banks are required to purchase stock in their respective Federal Reserve Bank as a condition of membership in the Federal Reserve System.

The Capital Stock of Each Federal Reserve Bank