Although a corporation that is owned by its member banks, the Federal Reserve System
A)reports directly to the president in an annual report.
B)is quite independent of them, and they receive almost none of the Fed's profits.
C)is administered by Congress and all its profits are distributed to the member banks.
D)turns all its profits over to the state governments of each district bank.

Question

Quizplus · Accepted Answer

The Federal Reserve System is indeed owned by its member banks, but it is quite independent of them. The member banks do not receive almost none of the Fed's profits. In fact, the Fed turns over the majority of its profits to the U.S. Treasury, not to the member banks.

Although a Corporation That Is Owned by Its Member Banks