HBCU Money™ B-School: 14 Little Known Facts About The Federal Reserve

Just 14 things that you may or may not know about the Federal Reserve Bank that were shared by FederalReserveEducation.org’s outreach to teach citizens more and more about how and what the Federal Reserve role actually is in their day to day lives. Our Editor-In-Chief William A. Foster, IV got 10 out of 15 correct on their quiz. Looks like he may need to go back to business school and take a few refresher courses.

1. The profit (revenues in excess of costs) of the Federal Reserve is given to the U.S. Treasury.
2. Managing the federal deficit is NOT a function of the Federal Reserve.
3. The Board of Governors, the governing body of the Federal Reserve System, is set up to consist of 7 members.
4. Congress is the organization that established the Federal Reserve System.
5. 38 percent of commercial banks in the U.S. are members of the Federal Reserve System.
6. 12 districts make up the Federal Reserve System.
7. The San Francisco Federal Reserve district serves the largest number of states.
8. Member banks are NOT required to hold stock in Reserve Banks.
9. Federal Reserve head offices each have a 9 member board of directors. 
10. Federal Reserve Bank employees are NOT considered to be government employees.
11. State Advisory Council is NOT an advisory council to the Federal Reserve Board of Governors.
12. Each Federal Reserve District president reports to the board of directors. 
13. The Federal Reserve is the 3rd attempt at our nation’s central bank.
14. The Federal Reserve’s primary source of income is interest on government securities.