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

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is the main policy designer of the Federal Reserve System, as it is responsible for setting monetary policy. The FOMC is composed of the seven members of the Board of Governors and five of the twelve Federal Reserve Bank presidents, who rotate on a yearly basis. The FOMC meets eight times per year to make decisions on monetary policy, such as interest rates and other measures to influence inflation and economic growth. The other options, such as the 12 district banks, Council of Economic Advisors, and President and Congress, all play important roles in the Federal Reserve System, but the FOMC is the primary policy-making body.

The Main Policy Designer of the Federal Reserve System Is