The Federal Open Market Committee
A) is comprised of members of the Federal Reserve board and representatives of all Federal Reserve Banks.
B) came into being at the time the Federal Reserve System was created.
C) is made up of the presidents of the 12 Federal Reserve Banks.
D) was created under a provision of the Banking Act of 1935.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) was created under a provision of the Banking Act of 1935, also known as the Banking Act of 1933. It is responsible for conducting Open Market Operations (OMO) and setting monetary policy in the United States. The committee is comprised of members of the Federal Reserve board and representatives of some of the Federal Reserve Banks, although not all 12.