Economic Question

1 . The nomenclature of the Federal Reserve System arose out of the Federal Reserve Act of 1913 . The Federal Reserve is at times referred to as the Fed ' or the Federal Reserve . It is a government entity with private components that is in effect the central banking system of the United States . The Federal Reserve System is organized into five components . The first component of the Federal Reserve System is the board of directors . These individuals are presidentially appointed and serve on the board of the Federal Reserve in Washington , D .C . The

br second component of the Federal Reserve is the Federal Open Market Committee . This committee is in charge of overseeing the United State 's open market operations . Open market operations are the buying and selling of government securities . The Open Market committee specifies the short term objectives of these operations . The Federal Open Market is also in charge of directing operations of the Federal Reserve System in foreign exchange markets . The third component of the Federal Reserve System is the twelve Federal Reserve Banks that are located in major cities across the United States . These banks act as fiscal authorities and agents of the United States Treasury Department and each bank has its own board of nine members . The fourth component of the Federal Reserve System is the many private U .S . member banks . These banks subscribe to a set amount of non-transferable stock in their regional Federal Reserve Bank . The fifth component of the Federal Reserve System...