Chapter 15, Problem 9AA

To determine

To explain: The number of Federal Reserve banks and branches.

Explanation of Solution

The Federal Reserve System acts with its network of banks. Fed divides the country into 12 districts of Federal Reserve, each district has a Fed district bank. These district banks are arranged as a corporation whose owner are the member banks. There are further 25 branch banks of the district banks.

Economics Concept Introduction

Introduction:

Federal Reserve-The Federal Reserve was formed in the year 1913 by Congress to act as the central banking organization of nation. It is a system or network of banks. The Federal Reserve or Fed is the body responsible for forming the monetary policies in the United States.