State member Banks are chartered by the state and are members of which system?

• A. Federal Reserve System
• B. Office of the Comptroller of the Currency
• C. Federal Deposit Insurance Corporation
• D. National Credit Union Administration

Answer: (A)

State-chartered banks can become part of the Federal Reserve System, which is the United States central banking framework. Membership ties a bank to the Fed, giving access to its payment services and systems, as well as Fed supervision and the monetary policy framework. This is different from national banks, which are required to belong to the Fed. The other entities listed regulate different parts of the system: the OCC charters and oversees national banks, the FDIC insures deposits, and the NCUA regulates credit unions.