The Fed's principal decision-making body, which directs buying and selling U. S. government securities, is known as the:
A) Federal Deposit Insurance Corporation.
B) District Board of Governors.
C) Federal Open Market Committee.
D) Reserve Requirement Regulation Conference.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is the principal decision-making body of the Federal Reserve System that is responsible for directing the buying and selling of U.S. government securities. The other options, such as the Federal Deposit Insurance Corporation and the Reserve Requirement Regulation Conference, do play important roles in the financial system, but they are not directly responsible for the Fed's monetary policy decisions.

The Fed's Principal Decision-Making Body, Which Directs Buying and Selling