ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fiscal Operating Money Committee
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Federal Open Market Operations
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Financial Options Management Corporation
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Final Organized Money Company
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Detailed explanation-1: -The Federal Open Market Committee (FOMC) consists of twelve members–the seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.
Detailed explanation-2: -Open market operations (OMOs)–the purchase and sale of securities in the open market by a central bank–are a key tool used by the Federal Reserve in the implementation of monetary policy. The short-term objective for open market operations is specified by the Federal Open Market Committee (FOMC).
Detailed explanation-3: -FOMC is the Fed’s primary monetary policy making body because it has the power to raise or lower interest rates. 12 voting members: 7 member Board of Governors, the president of the new york district Fed, 4 district Federal Reserve Bank presidents from the other 11 districts who serve one year rotation terms.
Detailed explanation-4: -The Federal Open Market Committee, or FOMC, is the Fed’s monetary policymaking body. It is responsible for formulation of a policy designed to promote stable prices and economic growth. Simply put, the FOMC manages the nation’s money supply.