federal reserve system

The Fed is made up of:

• the Board of Governors (7 people)
• the Federal Reserve Banks (12 districts)
  • 9 board members each
    • class A:
      • represent member banks’ interests
      • elected by the member banks
    • class B:
      • represent public interest
      • elected by the member banks but must be individuals who are not officers, directors, or employees of any bank
    • class C:
      • represent public interest
      • appointed by the board of governors of the fed
• Federal Open Market Committee (FOMC)
• Member banks (commercial banks that hold stock in the regional Federal Reserve Banks)

The fed earns interest from:

• US government securities that they hold
• discount window loans (made to banks)

The money earned is then handed over to the US treasury department.