RSM230H1 Chapter Notes - Chapter 7: Federal Open Market Committee, Federal Reserve System, Federal Reserve Bank
31 Dec 2017
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The initial diffusion of power has resulted in the evolution of the federal. Reserve system to include the following entities: the federal reserve banks, the board of governors of the federal reserve system, the federal open. Each of the 12 federal reserve districts has one main federal reserve bank. Each of the federal reserve banks is a quasi-public (part private, part government) institution owned by the private commercial banks in the district that are members of the federal reserve system. These member banks have purchased stock in their district federal reserve bank (a requirement of membership), and the dividends paid by that stock are limited by law to 6% annually. The member banks elect six directors for each district bank; three more are appointed by the board of governors. Together, these nine directors appoint the president of the bank (subject to the approval of the board of governors). The three c directors, who are appointed by the.
