Member banks of the Federal Reserve System are entitled to receive a 6 percent dividend on the Federal Reserve bank stock they hold and may elect a majority of the directors of the Federal Reserve bank in their district.

Question

Quizplus · Accepted Answer

Member banks of the Federal Reserve System are indeed required to purchase stock in their district's Federal Reserve Bank, on which they receive a 6 percent dividend annually. Additionally, these member banks have the privilege to elect six of the nine directors of their district's Federal Reserve Bank.

Member Banks of the Federal Reserve System Are Entitled to Receive