The 12 regional Federal Reserve Banks
A) are not allowed to make loans to banks in their districts.
B) regulate banks in their districts.
C) have more voting members on the FOMC than does the Board of Governors.
D) are each headed by a member of the Board of Governors.

Question

Quizplus · Accepted Answer

The 12 regional Federal Reserve Banks are responsible for regulating banks in their districts. They also play a role in implementing the monetary policy decisions made by the Federal Open Market Committee (FOMC), but they do not have more voting members on the FOMC than the Board of Governors. Each regional Federal Reserve Bank is headed by a president who is appointed by the bank's board of directors, not a member of the Board of Governors. Additionally, the Federal Reserve Banks are allowed to make loans to banks in their districts as a way to help ensure that the banking system has adequate liquidity.

The 12 Regional Federal Reserve Banks