Question

How is the Federal Reserve structured?

Answer 1

Answer - The federal reseve works on the two structured model. It has the main office located in the Washington DC with the Board of Directors and then the 12 reserve banks loacated in 12 states of US. There are three parts to this reserve reserve system , namely the board of directors , the reserve banks and the Federal Open Market Commitee. The FOMC brings together the Board of directors and the Federal banks to formulate the policy for the nation called the monetary policy. The board of governors has 12 member in total out of which the 7 members are nominated by the president and are permanent for 14 years. The other members are on the rotation basis. One chair is designated by the president itself.