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Viefleur [7K]
3 years ago
15

The Board of Governors is the policy making body at the FED and is responsible for setting the _______________ (rate of interest

charged to commercial banks) and the reserve requirements (the amount of customer deposits which commercial banks must hold back and not loan out).
Social Studies
1 answer:
Nitella [24]3 years ago
8 0

Answer:

Reserve Requirement

Explanation:

The main governing body of FED is called board of governors. It helps implementing the monetary policy of US and oversees the Federal Reserve Banks.  The appointment of Governors is done by the president and the senates confirms it. Its current chairman is Jerome Powell and the vice chairman is Richard Claida. There are eight committee in the board.

Reserve requirement is the cash that bank must have at the closest Federal Reserve Bank or in their vaults.  It is set by Federal board of Governors. It is one of the main tools of monetary policy.

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