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

Question

Responses

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

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 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 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 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 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 statement that accurately explains the functions of the Federal Reserve district banks and those of the Board of Governors is:

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.

The Board of Governors plays a key role in policymaking, including setting the target federal funds rate and overseeing the overall banking system, while the district banks are responsible for implementing these policies and conducting operations like open market activities.