The Federal Open Market Committee
A) is made up of the presidents of the 12 Federal Reserve Banks.
B) consists of the seven members of the Board of Governors of the Fed, plus five presidents of Reserve Banks.
C) is appointed by the Chairman of the Federal Reserve System.
D) is elected by Fed member banks.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) consists of the seven members of the Board of Governors of the Fed and five of the twelve Reserve Bank presidents, who serve on a rotating basis. The president of the Federal Reserve Bank of New York is a permanent member, while the other four seats are filled on a rotating basis by the other eleven Reserve Bank presidents. The FOMC is responsible for setting monetary policy in the United States, including decisions on interest rates and money supply.