Although neither ________ nor the ________ is officially set by the Federal Open Market Committee,decisions concerning these policy tools are effectively made by the committee.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) does not officially set reserve requirements or the discount rate, but its decisions effectively influence these policy tools. Reserve requirements are the minimum amount of reserves a bank must hold, and the discount rate is the interest rate charged to commercial banks for borrowing funds from the Federal Reserve's discount window. Both are influenced by the FOMC's monetary policy decisions.

Although Neither ________ nor the ________ Is Officially Set by the Federal

Although Neither nor the Is Officially Set by the Federal