<P> The Federal Reserve System is composed of several layers . It is governed by the presidentially appointed Board of Governors or Federal Reserve Board ( FRB ) . Twelve regional Federal Reserve Banks , located in cities throughout the nation , regulate and oversee privately owned commercial banks . Nationally chartered commercial banks are required to hold stock in , and can elect some of the board members of , the Federal Reserve Bank of their region . The Federal Open Market Committee ( FOMC ) sets monetary policy . It consists of all seven members of the Board of Governors and the twelve regional Federal Reserve Bank presidents , though only five bank presidents vote at a time ( the president of the New York Fed and four others who rotate through one - year voting terms ) . There are also various advisory councils . Thus , the Federal Reserve System has both public and private components . It has a structure unique among central banks , and is also unusual in that the United States Department of the Treasury , an entity outside of the central bank , prints the currency used . </P>
<P> The Federal Reserve System is composed of several layers . It is governed by the presidentially appointed Board of Governors or Federal Reserve Board ( FRB ) . Twelve regional Federal Reserve Banks , located in cities throughout the nation , regulate and oversee privately owned commercial banks . Nationally chartered commercial banks are required to hold stock in , and can elect some of the board members of , the Federal Reserve Bank of their region . The Federal Open Market Committee ( FOMC ) sets monetary policy . It consists of all seven members of the Board of Governors and the twelve regional Federal Reserve Bank presidents , though only five bank presidents vote at a time ( the president of the New York Fed and four others who rotate through one - year voting terms ) . There are also various advisory councils . Thus , the Federal Reserve System has both public and private components . It has a structure unique among central banks , and is also unusual in that the United States Department of the Treasury , an entity outside of the central bank , prints the currency used . </P>
a bank that belongs to the federal reserve system is called a
a bank that belongs to the federal reserve system is called a
Federal Reserve Bank
Federal Reserve Bank