Structure of federal reserve system

1 The Board of Governors-

 The board of governors deals with the regulation and supervision of the banking system and
implementation of the payment system.
 The board has seven member appointed by the president and endorsed by the congress.
 The term of the members is 14 years.
 One member of the Board is designated as the chairman and another one as vice chairman
for a period of 4 years.

2. Federal Open Market Committee (FOMC)-

 The FOMC consists of all the seven members of the board of governors and five reserve
banks presidents out of the 12 reserve bank’s presidents.
 While president of the new York federal reserve is a permanent in member, others are
elected rotation for a term of one year.

3. Federal Reserves Banks-

 There are 12 federal reserve banks under the federal reserve system.
 The 12 federal reserve banks are
1. Boston
2. New York
3. Philadelphia
4. Cleveland
5. Richmond
6. Atlanta
7. Chicago
8. St. Louis
9. Minneapolis
10. Kanas City
11. Dallas
12. San Francisco
 The board of nine directors are classified as class A, consisting of three directors
representing the commercial banks, Class B and Class C having three directors each
representing the public.