Question

The district Federal Reserve Banks are owned by

a) the federal government.

b) private banks which are part of the Federal Reserve System in each region.

c) the Federal Reserve System.

d) the state governments covered by each bank's region.

Answer 1

The Federal Reserve bank is the central banking system of the United States. Under the same, there are twelve in total - one for each of the district banks created under the Federal Reserve Act fo 1913. These banks are jointly responsible for the implementation of the monetary policy set by the Federal Open Market Committee.

Thus, district Federal Reserve Banks are owned by the Federal Reserve system and not by private banks or state governments.

Option C is the correct answer.