Question

45) All of the following are elements in the structure of the Fed EXCEPT the A. Board of Governors. B. Federal Open Market Committee. C. Executive Council to the Governor. D. 12 regional Federal Reserve Banks.

Answer 1

Ans -(C) Executive council to governor - there is no such element in the structure of Fed.

A) Yes, board of governors is the element in the structure of Fed.It is the importance governing system in the Fed.It has the responsibility to oversee the banks of Fed and help in executing the monetary policies of the US.

B)Yes, federal open market committee is the element in the structure of Fed.It help to unite board of governors and Reserve bank presidents for setting monetary policies.It provides directions for setting of monetary policy particularly by controlling open market operations.

D) Yes,12 regional federal reserve banks are the element in the structure of Fed.They are decentralised parts of central bank of US.Each Fed bank is individually incorporated consisting of 9 board of directors.They are operating hands of US banking system and perform various functions.