Chapter 14

Referring to the figure about the Federal Reserve System​ above, we find that

#4 Screenshot CH14 D. there are 12 federal reserve bank cities.

Each Federal Reserve district has ▼ three two one main Federal Reserve​ bank/banks.

#4 Screenshot CH14 one

The graph on the right shows a relationship between a measure of central bank independence and macroeconomic performance for 17 countries. On the horizontal axis is an index of central bank independence. The 17 central banks are rated from 1​ (least independent) to 4​ (most independent.). On the vertical axis is the average annual inflation rate measured over the years 1980dash-1988. Based on this​ graph, one would conclude that central bank independence and inflation​ are:

#9 Screenshot CH14 A. negatively​ related; countries with low ratings have generally produced higher inflation

The Federal Reserve System include the A. Federal Open Market Committee. B. U.S. Treasury. C. state banks. D. Office of the Comptroller.

A. Federal Open Market Committee.

Which of the following functions is not performed by the twelve Federal Reserve​ Banks? A. Setting the reserve requirement. B. Acting as liaisons with the business community. C. Clearing checks. D. Withdrawing damaged currency and issuing new currency.

A. Setting the reserve requirement.

Which of the following entities in the Federal Reserve SystemLOADING... controls the discount rateLOADING...​? A. The Board of Governors B. The Federal Advisory Council C. The FDIC D. Member commercial banks

A. The Board of Governors

How does the Federal Reserve have a high degree of instrument​ independence? A. The Federal Reserve can choose any method it wants in order to achieve a given set of policy objectives. B. The Federal Reserve can contract with independent experts to choose the appropriate fiscal instruments. C. The Federal Reserve is able to set the goals of monetary policy. D. The Federal Reserve is not subject to the influence of Congress.

A. The Federal Reserve can choose any method it wants in order to achieve a given set of policy objectives.

The many regional Federal Reserve banksLOADING... resulted from a compromise between parties​ favoring: A. a private central bank and those favoring a government institution. B. the establishment of a central bank and those who opposed its establishment. C. a Board of Governors in​ Washington, D.C., and those who favored its establishment in New York City. D. None of the above are correct.

A. a private central bank and those favoring a government institution.

The Maastricht Treaty A. gives the ECB more independence than the Federal Reserve. B. enhances the ability of Eurozone countries to influence the ECB. C. established the unique structure of central banking in the United States. D. subjects Federal Reserve monetary policy actions to audits by the GAO.

A. gives the ECB more independence than the Federal Reserve.

Proponents of a Fed under greater control of the president or Congress argue that A. greater control would help coordinate fiscal and monetary policies. B. some sacrifices in unemployment is necessary to lower inflation. C. the Fed has always used its independence successfully. D. it is undemocratic to have monetary policy controlled by an elite group.

A. greater control would help coordinate fiscal and monetary policies.

In recent​ years, the tendency for central banks has been​ to: A. increase independence B. decrease independence C. increase reserve requirements D. decrease transparency E. Both A and C are correct

A. increase independence

Each of the Federal Reserve banks is considered a​ quasi-public institution because A. it is owned by the private commercial banks in its district that are members of the Federal Reserve System. B. all of the directors of district banks are elected by member banks. C. it uses its staff of professional economists to research topics related to the conduct of monetary policy. D. member banks have sold stock to their district Federal Reserve bank.

A. it is owned by the private commercial banks in its district that are members of the Federal Reserve System.

Critics of Fed independence argue​ that: A. it is undemocratic to have monetary policy controlled by an elite group responsible to no one B. the​ Fed, since it does not face a binding budget​ constraint, spends too much of its earnings C. an independent Fed conducts monetary policy with a consistent inflationary bias D. Only A and B are correct

A. it is undemocratic to have monetary policy controlled by an elite group responsible to no one

There was no central bank in the United States between 1836 and 1913 because of the following except​: A. prominent support for centralized power. B. open hostility by the American public toto the existence of central banks. C. expiration of the charter of the Second Bank of the United States. D. distrust of moneyed interests.

A. prominent support for centralized power.

When the charter of the Second Bank of the United States expired in​ 1836: A. there was no lender of last resort to provide reserves to the banking system. B. bank panics and losses to depositors declined. C. the Treasury assumed the role as lender of last resort. D. it created a central bank to help prevent future bank panics.

A. there was no lender of last resort to provide reserves to the banking system.

The primary reason for the creation of the Federal Reserve SystemLOADING... ​was: A. to reduce or eliminate future bank panics. B. to create a single central bank similar to the Bank of England. C. to stabilize​ short-term interest rates. D. to eliminate​ state-chartered banks.

A. to reduce or eliminate future bank panics.

Which of the following statements concerning the​ fourteen-year term for members of the Board of Governors is true? A. The​ fourteen-year term is renewable. B. Members of the Board of Governors are appointed by the president for fourteen-year terms. C. Most members of the Board of Governors serve out the entire fourteen-year term. D. The​ fourteen-year term allows significant dependence from political pressures.

B. Members of the Board of Governors are appointed by the president for fourteen-year terms.

Which of the following entities in the Federal Reserve System sets reserve​ requirements? A. The FDIC B. The Board of Governors C. The Federal Advisory Council D. Member commercial banks

B. The Board of Governors

Which of the following is not part of the checks and balances of the Federal Reserve SystemLOADING...​? A. The ability of the twelve regional banks to affect discount policy. B. The requirement that all depository institutions keep deposits at the Fed. C. The​ Fed's independence from the federal government and the setting up of the Federal Reserve banks as incorporated institutions. D. The provision for three types of directors to district banks​ (A, B, and​ C) that would represent different groups​ (professional bankers, business​ people, and the​ public).

B. The requirement that all depository institutions keep deposits at the Fed.

What is the primary tool that Congress uses to exercise some control over the​ Fed? A. The threat that Congress can withhold the​ Fed's appropriations. B. The threat that Congress will acquire greater control over the​ Fed's finances and budget. C. The threat that Congress can remove some members of the Board of Governors on a whim. D. All of the above are correct.

B. The threat that Congress will acquire greater control over the​ Fed's finances and budget.

The policy tools of the Fed are the following except A. reserve requirements. B. bond creation. C. open market operations. D. the discount rate.

B. bond creation.

The ability of a central bank to set monetary policy instrumentsLOADING... is​ ___________, while the ability of a central bank to set goals of monetary policy is​ _______. A. policy​ independence; target independence B. instrument​ independence; goal independence C. goal​ independence; target independence D. target​ independence; policy independence

B. instrument​ independence; goal independence

The theory of bureaucratic behaviour when applied to the FedLOADING... helps to explain why the​ Fed: A. sought less control over banks in the 1980s B. is so secretive about the conduct of future monetary policy C. is willing to take on powerful groups that may threaten its autonomy D. is supportive of congressional attempts to limit the central​ bank's autonomy

B. is so secretive about the conduct of future monetary policy

The theory of bureaucratic behavior suggests that the objective of a bureaucracy is to​ maximize: A. profits. B. its own welfare. C. conflicts between the executive and legislative branches of government. D. the​ public's welfare.

B. its own welfare.

The president of the United States can exert influence over the Federal Reserve in all of the following ways except​: A. appointing new members to the Board of Governors. B. reducing the​ Fed's net earnings. C. appointing a new chairman to the Board of Governors. D. influencing congressional decisions that might reduce the independence of the Fed.

B. reducing the​ Fed's net earnings.

While the Fed enjoys a relativity high degree of independence for a government​ agency, it feels political pressure from the president and Congress because of the following except A. Congress could limit Fed power through legislation. B. the Fed must go to Congress each year for operating revenues. C. The U.S. president reappoint Fed Governor positions every fourteen years. D. the president cannot dismiss a Fed Governor at any time.

B. the Fed must go to Congress each year for operating revenues.

A dilemma challenging the existing structure of the European Central Bank​ (ECB) has been brought on​ by: A. the​ over-involvement of the ECB in the supervision and regulation of financial institutions B. the possibility of expanding the membership in the Eurosystem C. the ECB president and vice​ president's avoidance of the press

B. the possibility of expanding the membership in the Eurosystem

Which of the following statements about central bank structure and independence is​ true? A. In recent​ years, greater independence has been granted to many central banks with the exception of the Bank of England and the Bank of​ Japan, which are still subject to strict governmental control. B. In​ theory, central banks subject to government control produce better monetary​ policy, but experience suggests that more independent central banks have produced superior monetary policy results. C. In recent​ years, there has been a remarkable trend toward increasing independence. D. Only A and C are correct. E. All of the above are correct.

C. In recent​ years, there has been a remarkable trend toward increasing independence.

The presidents of each of the district Federal Reserve banks​ (including the New York Federal Reserve​ bank) are currently not required to undergo a formal political appointment and approval process. Do you think this is​ appropriate? A. No. Because private banks can influence the appointment of their district Federal Reserve​ president, the benefits of eliminating this potential conflict of interest far outweigh the costs of the approval process. B. Yes. Since only five of the Federal Reserve bank presidents have a​ vote, they are not able to influence policy​ matters, thus a formal political appointment and approval process is unnecessary. C. Maybe. A formal approval process is​ lengthy, which might leave some Federal Reserve districts without​ leadership, possibly creating more problems than it solves.

C. Maybe. A formal approval process is​ lengthy, which might leave some Federal Reserve districts without​ leadership, possibly creating more problems than it solves.

Despite the important role that the Board of Governors has in setting monetary​ policy, seats to serve on the Board of Governors can sometimes be empty for several years. How could this​ happen? A. Candidates must come from the same Federal Reserve district to ensure adequate representation. B. Governors are limited to one​ fourteen-year term, so candidates will not leave their​ private-sector jobs. C. Since members of the Board of Governors are appointed by the president and confirmed by the​ Senate, these seats may remain vacant due to the arduous and lengthy political approval process that candidates must endure. D. All of the above are correct.

C. Since members of the Board of Governors are appointed by the president and confirmed by the​ Senate, these seats may remain vacant due to the arduous and lengthy political approval process that candidates must endure.

Which is more​ independent, the Federal Reserve or the European Central​ Bank? Why? A. The Federal Reserve System—Its charter can be changed through​ legislation, making it more independent than the European Central Bank. B. The Federal Reserve System—It must be more independent since the European Central Bank was patterned after it. C. The European Central Bank—Its charter cannot be changed through​ legislation, making it more independent than the Federal Reserve. D. Because the structures of the Federal Reserve and the European Central Bank are​ similar, it can be argued that the two systems have the same level of independence.

C. The European Central Bank—Its charter cannot be changed through​ legislation, making it more independent than the Federal Reserve.

If the Federal Reserve has a specific mandate from Congress to achieve​ "maximum employment and​ low, stable​ prices," then how does the Fed have goal​ independence? A. The Fed is free to discuss the assigned goals with Congress. B. The Fed can choose any method it wants in order to achieve the assigned goal. C. The Fed is free to interpret exactly what these objectives mean. D. The Fed is able to change its goals frequently.

C. The Fed is free to interpret exactly what these objectives mean.

Which of the following does not explain why it is unlikely that the policy recommendation put forth by the chairman of the Board of Governors would ever be voted down by the rest of the​ FOMC? A. The chairman sets the agenda of FOMC meetings. B. The chairman selects the staff for research and analysis​ purposes, which effectively allows the chairman to present data that would support his or her policy recommendations. C. The chairman always has the final vote when making monetary policy decisions. D. The chairman is the spokesperson for the Fed and negotiates with Congress and the president.

C. The chairman always has the final vote when making monetary policy decisions.

Why was the Federal Reserve System set up with twelve regional Federal Reserve banks rather than one central​ bank, as in other​ countries? A. With twelve regional​ banks, the Federal Reserve could easily influence politics in all parts of the United States. B. With twelve regional​ banks, employees of the Federal Reserve could quickly and easily get to a monetary crisis point anywhere in the United States. C. The writers of the Federal Reserve Act wanted to ensure the​ Fed's power was not centralized in a single location. D. By creating twelve regional​ banks, writers of the Federal Reserve Act could ensure that finances from all parts of the country would flow through the Federal Reserve System.

C. The writers of the Federal Reserve Act wanted to ensure the​ Fed's power was not centralized in a single location.

Which of the following statements regarding Federal Reserve independence is​ incorrect? A. The Fed may feel pressure to support the​ president's policies since the president can veto legislation that might limit the​ Fed's discretionary power and authority B. The Board of Governors knows that their bureaucratic power can be reined in by congressional legislation and so must still curry favour with both Congress and the president C. The​ 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure D. In order to gain additional power to regulate the financial​ system, the governors need the support of Congress and the president to pass favourable legislation

C. The​ 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure

​"The Federal Reserve SystemLOADING... resembles the U.S. Constitution in that it was designed with many checks and ​balances." Is this statement​ true, false, or​ uncertain? Explain your answer. A. False. The Federal Reserve System was created to affect monetary policy​ only, and thus does not fall under the same checks and balances as the executive or legislative branches of government. B. False. Because the Federal Reserve acts independently from the​ government, it is not subject to a system of checks and balances. C. True. Because of public hostility and the centralization of​ power, the Federal Reserve System was created with many checks and balances to diffuse power. D. Uncertain. Because every Federal Reserve chairman has a different​ style, checks and balances may vary with each administration.

C. True. Because of public hostility and the centralization of​ power, the Federal Reserve System was created with many checks and balances to diffuse power.

Proponents of a Fed under greater control of the president or Congress argue that A. it is undemocratic to have monetary policy controlled by an elite group. B. some sacrifices in unemployment is necessary to lower inflation. C. greater control would help coordinate fiscal and monetary policies. D. the Fed has always used its independence successfully.

C. greater control would help coordinate fiscal and monetary policies.

An independent Federal Reserve A. is less likely to produce higher inflation and more likely to produce a political business cycle. B. is more likely to produce higher inflation and less likely to produce a political business cycle. C. is less likely to produce higher inflation and less likely to produce a political business cycle. D. is more likely to produce higher inflation and more likely to produce a political business cycle.

C. is less likely to produce higher inflation and less likely to produce a political business cycle.

A dependent Federal Reserve A. is less likely to produce higher inflation and more likely to produce a political business cycle. B. is less likely to produce higher inflation and less likely to produce a political business cycle. C. is more likely to produce higher inflation and more likely to produce a political business cycle. D. is more likely to produce higher inflation and less likely to produce a political business cycle.

C. is more likely to produce higher inflation and more likely to produce a political business cycle.

The New York Federal Reserve Bank is so important to the Federal Reserve System because of the following except that A. some of the largest commercial banks are in New York. B. it holds the largest gold deposits in the United States. C. it serves as the location for Federal Reserve board meetings. D. it is where the open market desk and foreign exchange trading desk are found.

C. it serves as the location for Federal Reserve board meetings.

The European Central Bank​ (ECB) has complete control over monetary policy in eleven euro countries and has a charter that cannot be changed by legislation. In comparison to the Federal Reserve SystemLOADING...​, the ECB​ is: A. less independent. B. equally independent. C. more independent.

C. more independent.

The M2 money multiplier increases in value when​ the: A. currency ratio increases B. excess reserves ratio increases C. required reserve ratio decreases D. interest rate decreases

C. required reserve ratio decreases

The Federal Open Market Committee is comprised of A. the five members of the Board of Governors plus seven of the twelve Federal Reserve Bank presidents. B. the five members of the Board of Governors plus the twelve Federal Reserve Bank presidents. C. the seven members of the Board of Governors plus five of the twelve Federal Reserve Bank presidents. D. the seven members of the Board of Governors plus the twelve Federal Reserve Bank presidents.

C. the seven members of the Board of Governors plus five of the twelve Federal Reserve Bank presidents.

The twelve Federal Reserve banks are involved in monetary policy in several ways including​: A. being the final authority for the discount rate. B. deciding which municipalities can obtain discount loans. C. voting on the purchase and sale of government securities that affect both interest rates and the amount of reserves in the banking system. D. issuing bonds.

C. voting on the purchase and sale of government securities that affect both interest rates and the amount of reserves in the banking system.

Eliminating the​ Fed's independence might lead to a more pronounced political business cycle because a politically exposed Fed would be more concerned with​: A. ​long-run objectives and thus be a defender of a sound dollar and a stable price level. B. ​long-run objectives and thus be more likely to engage in expansionary policies designed to lower unemployment and interest rates before an election. C. ​short-run objectives and thus be more likely to engage in expansionary policies designed to lower unemployment and interest rates before an election. D. ​short-run objectives and thus be a defender of a sound dollar and a stable price level.

C. ​short-run objectives and thus be more likely to engage in expansionary policies designed to lower unemployment and interest rates before an election.

Increasing the independence of a central bankLOADING... would​ probably: A. reduce pressures to pursue inflationary policies B. allow the central bank to more easily pursue monetary policies that directly oppose the​ government's fiscal policies C. hinder the coordination of monetary and fiscal policy D. All of the above are correct

D. All of the above are correct

In what ways can the regional Federal Reserve Banks influence the conduct of monetary​ policy? A. By having five of their presidents sit on the FOMC. B. Through their administration of the discount facilities at each bank. C. By having members serve on the Federal Advisory Council. D. All of the above are correct.

D. All of the above are correct.

The theory of bureaucratic behavior suggests that the Federal ReserveLOADING... ​will: A. try to avoid a conflict with the president and Congress over increases in interest rates. B. devise clever strategies in an effort to avoid blame for poor economic performance. C. try to gain regulatory power over more banks. D. All of the above are correct.

D. All of the above are correct.

Advocates of Fed independence fear that subjecting the Fed to direct presidential or congressional control​ would: A. impart an inflationary bias to monetary policy. B. force monetary authorities to sacrifice the​ long-run objective of price stability. C. make the​ so-called political business cycle less pronounced. D. Only A and B are correct. E. All of the above are correct.

D. Only A and B are correct.

Which of the following functions is not performed by any of the 12 regional Federal Reserve​ banks? A. Issuing new currency and withdrawing damaged currency B. Conducting economic research related to monetary policy C. Cheque clearing D. Setting interest rates payable on time deposits

D. Setting interest rates payable on time deposits

Which of the following entities in the Federal Reserve System directs open market operationsLOADING...​? A. The Federal Advisory Council B. Member commercial banks C. The Board of Governors D. The FOMC

D. The FOMC

Why is the Twelfth Federal Reserve district so geographically​ large, while the Second Federal Reserve district is so small by​ comparison? A. The size of the district reflects its relative importance in the Federal Reserve​ system: The smaller Second district is economically less important than the very large Twelfth district. B. The larger size of the Twelfth Federal Reserve district is the result of lobbying by bankers and business people. C. The size of the Second Federal Reserve district reflects its importance and special role in the Federal Reserve System. D. The districts represent the population and economic interests in 1913 when the Federal Reserve Act was created.

D. The districts represent the population and economic interests in 1913 when the Federal Reserve Act was created.

The Fed is the most independent of all US government agencies. What is the main difference between it and other government agencies that explains the​ Fed's greater​ independence? A. Congress cannot pass legislation that would restrict the​ Fed's independence B. The Fed is a​ private, profit-making institution C. The Fed has established performance measures that it is required to achieve D. The​ Fed's source of revenue is free from the appropriations process

D. The​ Fed's source of revenue is free from the appropriations process

The Federal Reserve System was established in 1913 A. to ensure banking services for the Treasury. B. to keep the stock markets from crashing. C. because of distrust of moneyed interests and centralized power. D. because the public became convinced a central bank was needed to avoid bank panics.

D. because the public became convinced a central bank was needed to avoid bank panics.

There was no central bank in the United States between 1836 and 1913 because of the because of the​: A. support for moneyed interests. B. prominent support for centralized power. C. push by the American public for the existence of central banks. D. expiration of the charter of the Second Bank of the United States.

D. expiration of the charter of the Second Bank of the United States.

Upper A lower level ofA lower level of central bank independence is associated with A. lower inflation and no change in unemployment.lower inflation and no change in unemployment. B. lower inflation and lower unemployment. C. no change in either unemployment or inflation. D. higher inflation and no change in unemployment.

D. higher inflation and no change in unemployment.

The Federal Reserve is remarkably free from political pressure because A. the chairman of the Board of Governors is appointed by the Federal Reserve Bank presidents. B. its structure cannot be changed by Congress through legislation. C. like members of the Supreme​ Court, members of the Board of Governors serve lifetime appointments. D. it has an independent source of revenue.

D. it has an independent source of revenue.

The European System of Central Banks​ (ESCB) is similar to the Federal Reserve System in​ that: A. it is structured such that the central banks for each country control their own budgets as Federal Reserve banks do. B. monetary operations are centralized. C. the ECB is involved in supervision and regulation of financial institutions. D. it is structured such that the central banks for each country have a similar role to that of the Federal Reserve banks.

D. it is structured such that the central banks for each country have a similar role to that of the Federal Reserve banks.

In England​, the Chancellor of the Exchequer (the equivalent of the US Secretary of Treasury) sets the goal of monetary​ policy, a target for inflation.​ Thus, when compared to the​ Fed, the Bank of EnglandBank of England ​has: A. more instrument independence B. less instrument independence C. more goal independence D. less goal independence

D. less goal independence

Greater central bank independence is associated with A. no change in either unemployment or inflation. B. lower inflation and lower unemployment. C. higher inflation and no change in unemployment. D. lower inflation and no change in unemployment.

D. lower inflation and no change in unemployment.

Although neither​ _____ nor the​ _____ is officially set by the Federal Open Market CommitteeLOADING...​, decisions concerning these policy tools are effectively made by the committee. A. reserve​ requirements; federal funds rate B. margin​ requirements; federal funds rate C. margin​ requirements; discount rate D. reserve​ requirements; discount rate

D. reserve​ requirements; discount rate

The M2 money multiplier is​ ___________ the M1 multiplier. A. substantially smaller than B. twice as large as C. not much different than D. substantially larger than

D. substantially larger than

Which of the following statements is​ true? A. The Eurosystem is the most independent central bank in the world B. The​ long-term goal of the European Central Bank​ (ECB) is price​ stability, which means that the goal for the Eurosystem is more clearly specified than it is for the Federal Reserve System C. The​ Eurosystem's charter cannot be changed by​ legislation; it can be changed only by revision of the Maastricht Treaty D. Only B and C are correct E. All of the above are correct

E. All of the above are correct

​'The independence of the Fed leaves it completely unaccountable for its​ actions.' Why is this statement not​ true? A. The president can appoint a new chairman of the Board of Governors every four years B. The Fed has to report to Congress on a semiannual basis to explain its actions C. The legislation that structures the Fed is written by Congress and is subject to change D. Only A and B are correct E. All of the above are correct

E. All of the above are correct

The Board of Governors of the Federal Reserve​ System: A. ​establishes, within​ limits, reserve requirements. B. effectively sets the discount rate. C. sets margin requirements. D. Only A and B are correct. E. All of the above are correct.

E. All of the above are correct.

Why is the New York Federal Reserve always a voting member on the​ FOMC? A. It is the only Federal Reserve bank that is a member of the Bank for International Settlements​ (BIS). B. The New York Federal Reserve district contains many of the largest commercial banks in the United States. C. The New York Federal Reserve is actively involved in the bond and foreign exchange markets. D. Only A and C are correct. E. All of the above are correct.

E. All of the above are correct.

Match the Federal Reserve entity to its responsibilities and duties given on the left. clear checks determines margin requirements meets eight times a year

Federal Reserve banks Board of Governors Federal Open Market Committee

The budget of the ECB is controlled by the ▼ ECB president National Central Banks Governing Council

National Central Banks

The largest Federal Reserve bank in terms of assets is that of ▼ Chicago New York Boston San Francisco

New York

▼ Open market operations Reserve requirements Discount rates are the most important policy tool the Fed has for controlling the money supply.

Open market operations

▼ Easing of monetary policy Tightening of monetary policy Open-market operations is the purchase and sale of government securities by the Federal Reserve that affect both interest rates and the amount of reserves in the banking system.

Open-market operations

The interest rate on overnight loans from one bank to another is the ▼ discount rate treasury yield federal funds rate

federal funds rate

The Federal Reserve Bank of New York holds ▼ one-half one-third one-quarter of the assets of the Federal Reserve System.

one-quarter

A situation in which monetary policy is expansionary prior to an election and contractionary after an election is known as the ▼ instrument independence political business cycle easing of monetary policy open market operations

political business cycle

Monetary policy is determined by ▼ the twelve Federal Reserve banks the Federal Reserve Advisory Committee the Board of Governors the Federal Open Market Committee

the Federal Open Market Committee

The first central bank in the United States was ▼ the First Bank of the United States the Federal Reserve the Bank of United States.

the First Bank of the United States

Each governor of the Board of Governors is appointed by ▼ the U.S. Senate the U.S. president the U.S. House of Representatives the New York Federal Reserve Bank

the U.S. president

The Board of Governors appoints ▼ three two four six directors of each district bank.

three

There are ▼ twelve ten five seven regional Federal Reserve banks in the Federal Reserve system.

twelve