The policy directive from the FOMC is carried out by
A) the presidents of the district banks.
B) the presidents of commercial banks that are members of the Federal Reserve System.
C) the account manager at the Federal Reserve Bank of New York.
D) private dealers in the bond market.

Question

Quizplus · Accepted Answer

The policy directive from the FOMC is carried out by the account manager at the Federal Reserve Bank of New York. This involves implementing the monetary policy decisions by buying or selling government securities in the open market, adjusting the Federal Funds Rate, and regulating the money supply in the economy. The presidents of the district banks and commercial banks that are members of the Federal Reserve System play important roles in the central bank's operations, but they do not directly implement the FOMC policy directive. Private dealers in the bond market may be affected by the FOMC's decisions, but they do not carry out the directive themselves.

The Policy Directive from the FOMC Is Carried Out by