Answer:
B. it is structured such that the central banks for each country have a similar role to that of the Federal Reserve banks.
Explanation:
The European System of Central Banks (ESCB) which was established under the Treaty on European Union (TEU).
It comprises of the European Central Bank (ECB) and the national central banks of all the 27 European Union (EU) member states, irrespective of adopting the Euro (£) or not. This has helped the European Union (EU) member states to achieve tight corporations and memorandum of understanding (MOUs) such as TARGET2 (single payment system).
The Federal Reserve System established by the U.S Congress on the 23rd of December, 1913 is the central bank of the United States of America. Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
The European System of Central Banks (ESCB) is similar to the Federal Reserve System in that it is structured such that the central banks for each country have a similar role to that of the Federal Reserve banks.
The roles of these banks are;
1. To provide the countries with safer financial systems.
2. To supervise and regulate the activities of banks and other depository financial institutions.
3. To provide monetary policy across the countries.
4. To maintain flexible financial stability in the member state.
