ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Office of Management and Budget
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Federal Open Market Committee
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Department of Treasury
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None of the above
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Detailed explanation-1: -The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations.
Detailed explanation-2: -All of the members of the Board serve on the FOMC, which is the body within the Federal Reserve that sets monetary policy (see “The Federal Open Market Committee: Selection and Function” on page 12).
Detailed explanation-3: -The primary responsibilities of the Federal Open Market Committee is for buying and selling federal government bonds in order to conduct monetary policy.
Detailed explanation-4: -Conducting Monetary Policy The Federal Reserve sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.
Detailed explanation-5: -The FOMC sets a target for the federal funds rate at its meetings and authorizes actions called open market operations to achieve that target.