Directions: Each statement describes the structure of the FED. Determine if each statement makes the FED a public institution (run by the gov’t) or a private institution (run by businesses) or both. The Federal Reserve was created by Congress.
1) goverment
The FED is governed by 7 members of the Board of Governors, appointed by the President.
2) government
Each FED district bank has a board of directors represented by bankers, business owners, and other professionals.
3) Buisness
FED district bank presidents are nominated by the Bank’s Board of Directors and approved by the Board of Governors. District bank presidents serve 5 year terms with salaries approved by the Board of Governors.
4) government
The Federal Open Market Committee sets monetary policy. The FOMC consists of the 7 Governors and the Presidents of 12 district banks.
5) buisness
The FED is the U. S. Government’s bank and maintains the Treasury’s bank account, and disburses gov’t payments.
6) buisness
The FED regulates the banking industry to ensure safe banking practices and compliance with banking laws.
7)
FED district banks distribute currency and provide emergency loans to banks.
8)
Employees from the 12 FED Banks are not government employees and are not subject to the same hiring restrictions as government agencies.
9)
The FED is self-financed from interest earned on its investments.
10)

Does the FED act more like a government agency or a private business? Explain.