The main policy designer of the Federal Reserve system is the
A) 12 district banks.
B) Federal Open Market Committee.
C) Council of Economic Advisors.
D) President and Congress.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is the main policy designer of the Federal Reserve system. It is responsible for setting monetary policy, including decisions on interest rates and the buying and selling of government securities. The 12 district banks play an important supporting role in collecting economic data and maintaining the payment system, but they do not have the same policy-making power as the FOMC. The Council of Economic Advisors advises the President on economic issues, but does not directly influence the Federal Reserve's policies. The President and Congress have some control over the composition of the Federal Reserve Board of Governors, but they do not directly design monetary policy.

The Main Policy Designer of the Federal Reserve System Is