Question

In the following table, use the selection menu to arrange the levels of power according to their positions in the power pyramid illustrating the structure of the Federal Reserve. Power position Level of power (From top to bottom) The Chair 1 Board of Governors 3 Federal Reserve Banks 4 Member Banks Which of the following fall under the responsibility of the board of governors? Check all that apply Allocation of money and coins throughout the economy Fiscal policy Operations of the Fed Monetary policy

Answer 1

If we illustrates the power structure at the Fed in form of a pyramid then the top most block would represent the Chairman of the Fed. He is the ultimate authority at the Fed.

Next block represents Board of Governors. There are 7 people constituting the Board of Governors. It is the Board of Governors that conduct the monetary policy.

Next block is represented by the federal reserve banks.

Last block is represented by the member banks or commercial banks that are supervised and regulated by the Fed.

So,

Following is the complete table -

Power Position	Level of Power
1	The Chair
2	Board of Governors
3	Federal Reserve Banks
4	Member Banks

The responsibility of the Board of Governors includes the following -

1. Board of Governors conduct monetary policy.

2. Board of Governors oversees the operation of the Fed.

Hence, the correct answer is the option (3) and (4).