Question 29/Multiple Choice Worth 4 points) (03.04 LC) Which of the following institutions makes up the largest part of the Federal Reserve System organization? Board of Governors Federal Free Market Committee The Branch Banks Member banks and other depository institutions

## Step 1<br />The Federal Reserve System, also known as the Federal Reserve or the Fed, is the central banking system of the United States. It is composed of several parts, including the Board of Governors, the Federal Open Market Committee, the Branch Banks, and Member banks and other depository institutions.<br /><br />## Step 2<br />The Board of Governors is a federal government agency that consists of seven members appointed by the President and confirmed by the Senate.<br /><br />## Step 3<br />The Federal Open Market Committee is a part of the Federal Reserve System that is responsible for setting monetary policy.<br /><br />## Step 4<br />The Branch Banks are the 12 regional Federal Reserve Banks that operate under the supervision of the Board of Governors.<br /><br />## Step 5<br />Member banks and other depository institutions are the largest part of the Federal Reserve System. These institutions include commercial banks, savings and loan associations, and credit unions that hold stock in the Federal Reserve Banks.