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Name: Instructor: Course: Date: Marketing Question 1 The Federal Reserve Bank is a significant organization in the United States of America. Nevertheless, it is one of the least comprehended institutions. There is a large amount of confusion of who coordinates, organizes and administrates its activities…
This paper will look at the Federal Reserve Bank’s organizational structure and its roles in governing monetary policy. The structure of the Federal Reserve Bank consists of Member banks, Reserve Banks, the Federal Open Market Committee, Board of Governors, and the congress and the President. Member Banks Member Banks refer to private banks, for example, Bank of America, which has the stock in any of the twelve local Reserve Banks. Every countrywide chattered bank must own stock in the Federal Reserve. In addition, state chartered banks or financial institutions may decide to own stock or not if they satisfy a number of conditions. The stock held by these banks cannot be traded or sold like ordinary stock and constituent banks get fixed amount of dividend every year on this stock (Arthur 417). Moreover, constituent banks have the dispensation of selecting a number of the officials in the board of their regional Reserve Banks. Reserve Banks The operating arm of the Federal Reserve Bank is made up of twelve regional Reserve Banks. These regional Reserve Banks have the responsibility of regulating and supervising constituent banks. In addition, the regional Reserve Banks are charged with the responsibility of handing out coins and currency to affiliate banks (Arthur 418). Every Reserve Bank is made up of nine board of directors. ...
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