ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is responsible for formulation of a policy designed to promote stable prices and economic growth
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decides tax rates
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change money supply to fight recessions
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None of the above
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Detailed explanation-1: -The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth.
Detailed explanation-2: -The Fed’s economic goals prescribed by Congress are to promote maximum employment, stable prices, and moderate long-term interest rates. The Federal Open Market Committee (FOMC or Committee) is responsible for monetary policy decisions to achieve these goals.
Detailed explanation-3: -The main role of the FOMC is to control monetary policy. A consolidated report of economic conditions in each of the Federal Reserve districts; used by the FOMC in formulating monetary policy.
Detailed explanation-4: -Supervising and Regulating Financial Institutions and Activities. The Federal Reserve promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole.