Which two components comprise the structure of the Federal Reserve System?

The structure of the Federal Reserve System is primarily composed of the Board of Governors and the regional Federal Reserve Banks, making the choice involving these two components correct.

The Board of Governors is a key component that oversees the entire Federal Reserve System, ensuring that it operates effectively and in alignment with monetary policy objectives. This board is made up of members appointed by the President and confirmed by the Senate, providing a mixture of expertise and oversight at the national level.

On the other hand, the regional Federal Reserve Banks serve as the operational arms of the Federal Reserve System. There are 12 regional banks located across the United States, and they carry out essential functions such as implementing monetary policy, supervising and regulating financial institutions, and providing financial services. This decentralized structure allows for a more localized approach while still adhering to the overarching policies set by the Board of Governors.

The other choices lack one of the necessary components that define the Federal Reserve System. For instance, while the Treasury Department plays a significant role in U.S. fiscal policy, it is not part of the structure of the Federal Reserve. Similarly, although local financial institutions interact with the central bank, they are not considered a structural component of the Federal Reserve itself. Congress and regional regulators, while influential in the broader