What is the structure of the Federal Reserve Bank System? What ...

[Frost2351]

What is the structure of the Federal Reserve Bank System?
 
  What will be an ideal response?

Question 2

Information is a scarce good because
 
  A) buyers typically know more than sellers about the products they are selling.
  B) competition encourages buyers and sellers to conceal a portion of what they know.
  C) its possession enables people to increase their wealth, and it cannot be acquired without cost.
  D) sellers typically know more than buyers about the products they are selling.

[alexisweber49]

Answer to Question 1

The key elements in the structure of the Fed are:
a. The Board of Governors. The Board of Governors has seven members who are appointed by the President of the United States and confirmed by the Senate, each for a 14-year term.
b. The Regional Federal Reserve Banks. There are 12 regional banks, one for each of the 12 Federal Reserve districts. Each of these 12 banks has nine directors who appoint the bank's president, which is subject to approval by the Board of Governors.
c. The Federal Open Market committee or FOMC. The FOMC is the Fed's main policy-making committee. It has 12 voting members. Seven of the members are on the Board of Governors. One of the members is the president of the Federal Reserve Bank in New York. The other four members are presidents of other Federal Reserve Banks. Which four presidents are members changes on an annual rotating basis.

Answer to Question 2

C

[Frost2351]

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