Who determines the open-market operations of the Federal Reserve System?
A)Board of Governors
B)FDIC
C)FHLBB
D)FOMC

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is responsible for determining the open-market operations of the Federal Reserve System, which includes the buying and selling of government securities to influence the money supply and interest rates. The FOMC is composed of members of the Board of Governors and regional Federal Reserve Bank presidents. Therefore, option D is the correct answer. Option A (Board of Governors) is not the best choice because while the Board of Governors is involved in the FOMC, it does not solely determine open-market operations. Options B and C (FDIC and FHLBB) are not the best choices because they do not have any direct involvement in determining the open-market operations of the Federal Reserve System.

Who Determines the Open-Market Operations of the Federal Reserve System