ECONOMICS
MONETARY POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Member banks
|
|
|
District Banks
|
|
|
Board of Governors
|
|
|
Federal Open Market Committee
|
Detailed explanation-1: -The Reserve Bank’s Monetary Policy Department (MPD) assists the MPC in formulating the monetary policy.
Detailed explanation-2: -The Board of Governors guides the operation of the Federal Reserve System to promote the goals and fulfill the responsibilities given to the Federal Reserve by the Federal Reserve Act.
Detailed explanation-3: -What is the Federal Open Market Committee? It is the branch of the Federal Reserve Board that determines the direction of monetary policy.
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: -The Federal Open Market Committee sets U.S. monetary policy in accordance with its mandate from Congress: to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy.