The Federal Open Market Committee oversees the money supply through the purchase and sale of government securities.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is responsible for implementing monetary policy in the United States. One of the tools it uses to influence the money supply is the purchase and sale of government securities, among other measures such as adjusting interest rates and reserve requirements. Therefore, the statement is true.

The Federal Open Market Committee Oversees the Money Supply Through