Which of the following is not a core component of the federal reserve bank? a board of governors b regional reserve banks c federal open market committee d department of the treasury

Department of the treasury is not a core component of the federal reserve bank. The correct answer is: D

The department of the treasury is an agency of government that is saddled with the responsibility of promoting economic prosperity with the aim of ensuring financial security of the United States. Part of the responsibility of the department of the treasury is to advise the president on financial and economic issues. It manages all forms of government revenue, collection of federal income taxes, manages the federal budget and prevents financial crises.

The duty of the department of the treasury includes but not limited to managing the federal finances, investigating and prosecuting tax evaders or tax forgers, ensure the enforcement of federal finance and tax laws, supervising national debt and thrift institutions, production of currency and coins.

Federal Reserve, which is now known as Federal Reserve Bank is the central bank of the United States. It is perceived as the most powerful financial body in the world. It responsibility includes controlling the supply of money and credit, introduces monetary policy, regulate banking operations. It supplies payment services to the public via credit unions, banks, saving and loans.

The department of the treasury and Federal Reserve are basically different agency, both are financial institutions. They also collaborate in the discharge of their responsibilities when necessary.  

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