The Federal Open Market Committee
A) consists of the Fed chairman and the 12 regional bank presidents.
B) meets every week to review the state of the economy.
C) is the main policy-making organ of the Federal Reserve.
D) is headed by the president of the New York Federal Reserve Bank.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is the main policy-making organ of the Federal Reserve. It consists of the Fed chairman and the seven members of the Board of Governors, as well as the presidents of five of the 12 regional Federal Reserve Banks. The FOMC meets eight times a year to review economic and financial conditions, and to make decisions on monetary policy, such as setting interest rates. The president of the New York Federal Reserve Bank is always a member of the committee and serves as the vice chairman.