Federal Reserve (FED)
The Federal Reserve is the Central Bank of the United States.  The Federal Reserve incorporates the 12 Federal Reserve branch banks, all national banks, state-chartered commercial banks, and some trust companies.

The Federal Reserve System is controlled by the Federal Reserve Board.

Seven members are appointed by the president and confirmed by the senate to serve for a term of 14 years in the Federal Reserve Board.  The major responsibility of the Board members is the formulation of monetary policy for the Federal Reserve System.

The Federal Reserve Board has a lot of regulatory and supervisory responsibilities over the banks that are members of the System.

The members of the Federal Reserve includes:-
• Bank holding companies
• International banking facilities in the United States
• Edge Act and agreement corporations

The board also controls the foreign activities of member banks and the U.S. activities of foreign-owned banks.  The Board also determines the margin requirements, which limits the use of credit for purchasing or carrying securities.

 
 
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