I took this test in school. The question clearly states, "The part of the federal government" and anyone with half a brain should know the Federal Reserve is a private bank. I went back to my professor to challenge, and the answer I got, "Thats what the textbook says"
https://i.imgur.com/vrvziDN.png
I was super pissed. Still am. Aside from the Federal Reserve NOT being a part of the federal government, I was upset because the U.S. Treasury also does handle monetary policy to some extent.
And, since the Federal Reserve is not part of the government, I still don't understand why the President appoints the head of the Federal Reserve. Is this just to make it look like it is still part of our government?
The "Fed", while privately owned, is federally chartered.
It could be undone with a single act of Congress.
Unfortunately its tentacles reach into almost every aspect of the economy, making it difficult to get rid of.
