The group responsible for deciding on monetary policy is the
A) Federal Open Market Committee.
B) Board of Governors only.
C) Federal Advisory Council.
D) group of 12 Federal Reserve Bank presidents only.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is the group responsible for deciding on monetary policy. It is made up of members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and a rotating cast of four other Federal Reserve Bank presidents. Together, they control the buying and selling of government securities on the open market, which has a direct impact on interest rates and the overall state of the economy.

The Group Responsible for Deciding on Monetary Policy Is the