Question

What is the role of the Federal Open Market Committee (FOMC)?
A. It makes key decisions about interest rates and the growth of the United States money supply.
B. It collects information on each Federal Reserve District and reports on economic conditions to the Board of Governors.
C. Composed of seven members appointed by the President, it oversees the Federal Reserve System.
D. It redraws the map of the 12 Federal Reserve Districts every ten years in response to economic changes.

Answer 1

What is the role of the Federal Open Market Committee (FOMC)? It makes key decisions about interest rates and the growth of the United States money supply.  The Federal Open Market Committee is part of the Federal Reserve Board. This board meets often to set monetary policy regarding interest rates that are charged to banks. The FOMC has twelve members that participate in meetings.