Congress established the FOMC because
A)a group was needed to set reserve requirements for member banks.
B)of a lack of coordination among district banks in carrying out open market operations.
C)Congress was attempting to expand its influence within the Federal Reserve System.
D)a group was needed to coordinate the setting of discount rates by the district banks.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) was established in 1935 due to a lack of coordination among district banks in carrying out open market operations. The FOMC was created to provide a centralized body that could coordinate the actions of the regional Federal Reserve Banks in implementing monetary policy. It is responsible for setting monetary policy in the United States, which includes decisions on interest rates and the supply of money in circulation.

Congress Established the FOMC Because