Which entity consists of regional banks and is responsible for determining monetary policy?

The Federal Reserve Board (FRB) is the entity responsible for determining monetary policy in the United States. It functions as the central bank and is tasked with managing the country’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates. The FRB implements this policy through various tools, including setting the federal funds rate, conducting open market operations, and regulating money supply and credit availability.

The Federal Reserve also plays a crucial role in overseeing and regulating member banks and provides financial services to these banks and the federal government. Its regional banks are each located in different areas throughout the country, ensuring consideration of regional economic conditions in its policy decisions.

In contrast, SIPC (Securities Investor Protection Corporation) primarily protects customers of brokerage firms in the event of insolvency, FINRA (Financial Industry Regulatory Authority) is responsible for regulating brokerage firms and exchange markets, and MSRB (Municipal Securities Rulemaking Board) regulates the municipal securities industry. These organizations do not have the authority or responsibility for determining monetary policy, which is why the Federal Reserve Board is the correct answer.