ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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advises the Fed on the overall health of the economy.
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is the Fed’s primary monetary policymaking body.
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advises the Fed on consumer credit laws.
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None of the above
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Detailed explanation-1: -The Federal Open Market Committee (FOMC) is the Fed’s monetary policy-making body. The FOMC has 12 voting members, including all seven members of the Board of Governors and a rotating group of five Reserve Bank presidents. The Chair of the Board of Governors also serves as Chair of the FOMC.
Detailed explanation-2: -The Federal Open Market Committee (FOMC), which is the Fed’s primary monetary policymaking body, is comprised of all members of the Fed’s Board of Governors and five of the 12 Reserve bank presidents.
Detailed explanation-3: -The Federal Open Market Committee (FOMC) is a committee within the Federal Reserve System (the Fed) that is charged under United States law with overseeing the nation’s open market operations (e.g., the Fed’s buying and selling of United States Treasury securities).
Detailed explanation-4: -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-5: -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.