<P> Daniel Tarullo submitted his resignation from the board on February 10, 2017, effective on or around April 5, 2017 . </P> <P> The Federal Open Market Committee (FOMC) consists of 12 members, seven from the Board of Governors and 5 of the regional Federal Reserve Bank presidents . The FOMC oversees and sets policy on open market operations, the principal tool of national monetary policy . These operations affect the amount of Federal Reserve balances available to depository institutions, thereby influencing overall monetary and credit conditions . The FOMC also directs operations undertaken by the Federal Reserve in foreign exchange markets . The FOMC must reach consensus on all decisions . The president of the Federal Reserve Bank of New York is a permanent member of the FOMC; the presidents of the other banks rotate membership at two - and three - year intervals . All Regional Reserve Bank presidents contribute to the committee's assessment of the economy and of policy options, but only the five presidents who are then members of the FOMC vote on policy decisions . The FOMC determines its own internal organization and, by tradition, elects the Chair of the Board of Governors as its chair and the president of the Federal Reserve Bank of New York as its vice chair . Formal meetings typically are held eight times each year in Washington, D.C. Nonvoting Reserve Bank presidents also participate in Committee deliberations and discussion . The FOMC generally meets eight times a year in telephone consultations and other meetings are held when needed . </P> <P> The Federal Advisory Council, composed of twelve representatives of the banking industry, advises the board on all matters within its jurisdiction . </P> <P> There are 12 Federal Reserve Banks, each of which is responsible for member banks located in its district . They are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco . The size of each district was set based upon the population distribution of the United States when the Federal Reserve Act was passed . </P>

Which of the following is a true statement regarding the federal reserve system