ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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provides advice on banking policy to the FED
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monitors regulatory banking laws for member banks
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sets policy on the sale and purchase of government bonds by the FED
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Follows the actions and operations of financial markets to keep them open and competitive
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Detailed explanation-1: -Which statement most accurately explains the role of the Open Market Committee of the Federal Reserve System (FED)? provides advice on banking policy to the FED.
Detailed explanation-2: -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-3: -The correct answer is B. Monetary policy is established by the Federal Open Market Committee. The Federal Reserve System has twelve Federal Reserve banks whereby there is one represented in each Federal Reserve districts.
Detailed explanation-4: -The Federal Open Market Committee is the Fed’s monetary policy-making body and manages the country’s money supply.