Question

Which statement accurately explains the functions of the Federal Reserve
district banks and those for the Board of Governors. (1 point)

The Board of Governors set the discount rate and reserve
requirements on banks while the Federal Reserve district banks
overlook the banking industry and implement the policies from
the Board of Governors.

The Board of Governors set the target federal funds rate and
overlook the banking industry while the Federal Reserve district
banks implement the policies from the Board of Governors.

The Federal Reserve district banks direct monetary policy and
overlook the banking industry while the Board of Governors
implement the policies from the district banks.

The Federal Reserve district banks set the target federal funds
rate and oversee open market operations while the Board of
Governors direct monetary policy and set reserve requirements
on banks.

Answer 1

The Board of Governors set the target federal funds rate and oversee the banking industry while the Federal Reserve district banks implement the policies from the Board of Governors.