Question

Describe the basic structure and functions of the Federal Reserve System.

Short answer

The Fed is split into two parts: A central authority, the Board of Governors, based in Washington, D.C., and a regional authority, the Fed System Banks.

Step-by-step solution

Federal system.

The Federal Reserve is the United States' central bank. The Fed controls the national banking system, handles inflation, stabilizes financial markets, protects consumers, and more. Despite the fact that the president appoints the members of the Fed board, it is designed to function independently of political interference.

Basic structure of Fed system. 

The FRS is split into two parts: a centralized Board of Governors in Washington, D.C., and a decentralized network of 12 Federal Banks across the U.S . The Federal Open Market Committee meetings are one in altogether the Fed's most visible activities.