tterdescription, as opposed to just independent.The Federal Reserve System has a structure designed by Congress to give it abroad view on the economy and on economic activity in all parts of the nation. The FEDis a system composed of a central, governmental agency - the Board of Governors inWashington, D.C., and twelve regional Federal Reserve Banks, located in major citiesthroughout the nation. The above components of the Federal Reserve System share theresponsibility of supervising and regulating certain financial institutions and activities; forproviding banking services to depository institutions and to the federal government; andfor ensuring that consumers receive proper information and equal treatment in their day today affairs with the banking system.One of the major components of the Federal Reserve System is the Federal OpenMarket Committee (FOMC), which is made up of the Board of Governors, the presidentof the Federal Reserve Bank of New York, and presidents of four other Federal ReserveBanks, who serve on a rotating basis. The FOMC oversees open market operations,which is the main tool used by the Federal Reserve to influence money market conditionsand the growth of money and credit. Not only is the FOMC a major component of the Federal Reserve System, twoother groups take active roles in the way the Federal Reserve System works. These twogroups are depository institutions, through which the tools of monetary policy operate,and advisory committees, which make recommendations to the Board of Governors and tothe Reserve Banks regarding the System’s responsibilities.The Board of Governors of the Federal Reserve System was established as afederal government agency. It is made up of seven members appointed by the President ofthe United States and confirmed by the U.S. Senate. The full term of a Board member isfourteen years; the appointments are staggered so that one term expires on January 31 ofeach even-numbered year....
