Decisions regarding purchases and sales of government securities by the Fed are made by the:

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is responsible for making decisions regarding purchases and sales of government securities by the Federal Reserve (Fed). The FOMC consists of 12 members, including the seven members of the Board of Governors and five of the 12 Reserve Bank presidents, who rotate on a yearly basis. The FOMC meets regularly to assess economic conditions and determine the appropriate monetary policy actions to take, which often involve buying or selling government securities in the open market. Therefore, choice C is the correct answer. The FDIC is responsible for insuring bank deposits, the DC is a committee of the Fed that sets the discount rate, and the FFC is a committee of the Fed that manages the federal funds market. None of these bodies are responsible for making decisions regarding purchases and sales of government securities.

Decisions Regarding Purchases and Sales of Government Securities by the Fed